Lagos State Governor, Babajide Sanwo-Olu, on Tuesday presented a N4.24 trillion budget proposal for 2026 to the Lagos State House of Assembly, describing it as a transformative plan for inclusive growth.
Presenting what he called the last full-year budget of his administration, Sanwo-Olu said the proposal would build on the foundations laid by the 2025 Budget of Sustainability and advance the state’s long-term development goals.
He tagged the 2026 proposal “The Budget of Shared Prosperity.”
“This budget reflects our unwavering commitment to eradicating poverty, expanding opportunities, and building a Lagos that works for everyone. Our vision remains clear: shared prosperity should not be an aspiration but a lived reality,” the governor said.
Sanwo-Olu explained that the spending plan is anchored on four pillars: a human-centred approach, modern infrastructure, a thriving economy, and effective governance, all aligned with his administration’s THEMES Plus Agenda.
He noted that Lagos has consolidated its status as Africa’s second-largest city economy after Cairo, attributing the feat to the consistency, innovation, and resilience of Lagos residents.
The governor highlighted other milestones, including hosting Africa’s first E1 Electric Powerboat Grand Prix, securing hosting rights for the 2026 Creative Africa Nexus and the 2027 Intra-African Trade Fair.
Sanwo-Olu also reviewed progress recorded in 2025 across education, healthcare, social protection, transport, housing, environmental management, agriculture, and technology. He said his administration completed more than 250 educational infrastructure projects, expanded healthcare facilities, strengthened the state’s social register, constructed major roads and bridges, modernised water transport, and advanced key housing schemes.
“We are shifting from building infrastructure to integrating it. We need to emphasise plans to interlink roads, rail, waterways, power systems and digital networks into one functional mobility ecosystem,” he said.
On the economy, Sanwo-Olu stated that Lagos secured over N1 trillion in new investment commitments in 2025 and signed a major MSME financing agreement with the Bank of Industry. He also cited initiatives such as the N500 billion Lagos Uptake Guarantee Fund aimed at boosting food systems and easing household pressure.
He reaffirmed the state’s commitment to fiscal discipline, transparency, and strengthening of its security architecture.
“Good governance is the backbone of development, and Lagosians must remain at the centre of every decision we make,” he said.
Sanwo-Olu commended the House of Assembly for its cooperation, saying the partnership had supported Lagos’ steady progression from stability to reform, expansion, and now shared prosperity.
“This budget strengthens our mission to build a Lagos that works for everyone,” he added, highlighting integrated mobility, climate resilience, social protection, digital advancement, and improved revenue systems as key drivers of development.
The Lagos State Government recently announced an 80 per cent performance in the implementation of its 2025 budget of N3.37 trillion.
Speaker of the Assembly, Mudashiru Obasa, applauded the governor for good governance and assured that the Assembly would give the budget proposal accelerated consideration.
The 2026 budget proposal includes:
- Revenue projection: N3.99 trillion
- Deficit financing: N243.33 billion
- Internally-generated revenue: N3.12 trillion
- Federal allocation: N874 billion
Expenditure breakdown:
- Capital expenditure: N2.19 trillion
- Recurrent expenditure: N2.052 trillion (overheads, personnel costs, recurrent debt servicing)
- General public services: N847.47 billion
- Public order and safety: N147.040 billion
- Economic affairs: N1.372 trillion
- Environment: N235.957 billion
- Housing: N123.760 billion
- Health: N338.449 billion
- Recreation: N54.682 billion
- Education: N249.132 billion
- Social protection: N70.024 billion
Sanwo-Olu had, in 2025, presented a budget of N3.37 trillion with a revenue estimate of N2.97 trillion.
