Lagos State Governor, Mr. Babajide Olusola Sanwo-Olu, on Tuesday presented the 2026 Appropriation Bill to the State House of Assembly, proposing a record total expenditure of N4.237 trillion. Tagged the ‘Budget of Shared Prosperity’, the proposal marks the final full-year budget of the administration, focusing on consolidating legacy projects and ensuring that the state’s economic growth benefits all residents.
Speaking at the presentation, Governor Sanwo-Olu anchored the budget on four key strategic pillars: “A Human-Centred Approach, Modern Infrastructure, A Thriving Economy and Effective Governance, aligning with the evolved T.H.E.M.E.S+ Agenda.”
The sheer scale of the 2026 budget underscores the administration’s aggressive development stance, representing a significant increase over the N2.525 trillion prorated estimate for the 2025 budget.
The breakdown of the proposed N4.237 trillion budget is as follows:
“Total Budget Size: N4,237,107,009,308. Total Revenue Target: N3,993,774,552,141 (heavily reliant on IGR, which accounts for over 78% of the total revenue), Total Internally Generated Revenue (IGR): N3,119,774,552,141, Total Federal Transfer: N874,000,000,000, and Deficit Financing: N243,332,457,167.”
Crucially, the budget maintains a higher allocation for capital projects over recurrent spending, continuing the state’s investment-focused fiscal strategy: “Capital Expenditure: N2,185,085,419,495 and Recurrent Expenditure: N2,052,021,589,812.”
The Governor stated that the budget marks a shift from growth for some to growth for all, designed to widen access to opportunity, deepen social support systems and accelerate infrastructure delivery.
The sectoral allocation highlights the administration’s priorities, with a massive chunk dedicated to economic affairs and human development.
“The largest single allocation, Economic Affairs, is set to drive the administration’s goal of integrating modern infrastructure linking roads, rail, waterways and digital networks into a cohesive functional ecosystem.
A major leap was noted with the signing of the Memorandum of Understanding for the Green Line Rail, which will connect Marina to Lekki/Ajah.”
Before presenting the 2026 figures, the Governor reviewed the performance of the 2025 Budget of Sustainability. As of the third quarter (September 30, 2025), the state achieved a total budget implementation rate of 81% of the prorated estimate.
“Total Implemented: N2,056,777,671,591. Capital Expenditure Performance: 90% of prorated estimate (N1.238 trillion actual spend). Recurrent Expenditure Performance: 84% of prorated estimate (N818.5 billion actual spend).”
Mr. Sanwo-Olu highlighted milestones in 2025, including the completion of the Badagry Maternal and Childcare Centre, over 250 educational infrastructure projects, and the monumental ₦500 billion Lagos Uptake Guarantee Fund, the largest subnational food-systems intervention in Nigeria’s history, aimed at transforming the agricultural landscape and reducing food pressure.
In his remarks, the Speaker of the House, Dr. Mudashiru Ajayi Obasa, lauded the Governor’s consistent track record and resourcefulness. He noted that the Assembly’s approval of a ₦125 billion bond in 2025, which was oversubscribed by 170%, was a direct reflection of combined fiscal discipline, transparency and credibility.
Obasa also praised the establishment of the Lagos State School of Health Science and Medicine, which he believes is a necessary measure to combat the ’japa’ syndrome (brain drain) among health workers.
He assured Lagosians that the House would meticulously scrutinise the N4.237 trillion proposal to ensure it aligns with the state’s aspirations for sustained economic resilience and inclusive growth.
