The Lagos State House of Assembly has approved a ₦4.4 trillion budget for the 2026 fiscal year, following the adoption of the report from the House Committee on Economic Planning and Budget.
Committee chairman Sa’ad Olumoh presented the report during Thursday’s plenary, outlining the assumptions, projections, and structure of the 2026 Appropriation Bill, dubbed the “Budget of Shared Prosperity.”
The budget marks the third cycle of the current administration and the final new-cycle budget of Governor Babajide Sanwo-Olu’s second term. It aligns with the state government’s development agenda, which is built on four strategic pillars: human-centric development, modern and adaptive infrastructure, a thriving 21st-century megacity economy, and governance that surpasses citizens’ expectations.
Olumoh noted that the budget framework considered key macroeconomic indicators, including an exchange rate of ₦1,512 to the dollar, a 14.7% inflation rate, daily oil production of 2.06 million barrels, and a benchmark oil price of $64 per barrel.
The committee also reviewed the performance of the 2025 budget, reporting a cumulative implementation rate of 79% as of November 2025. Capital expenditure stood at 75%, recurrent expenditure at 87%, while overall revenue performance was 79%.
For 2026, the approved budget allocates ₦2.052 trillion for recurrent expenditures and ₦2.185 trillion for capital projects, highlighting the government’s focus on infrastructure development. The budget also covers personnel costs, overheads, debt servicing, and repayment, with a projected deficit of around ₦243 billion to be funded through approved financing mechanisms.
Lawmakers described the budget as realistic and growth-focused. Aro Moshood noted that ₦171 billion was added during the review process, while Femi Saheed emphasized that the budget’s structure reflects Lagos State’s strong economic position if stakeholders fulfill their roles. Hon. Gbolahan Yishawu stressed that revenue reforms and prudent loan repayment strategies would further strengthen the state’s fiscal outlook.
Officials assured the Assembly that revenue agencies would work together to meet and potentially exceed projected revenues. Following deliberations, the House adopted the committee’s report, passed the 2026 Appropriation Bill, and completed its third reading.
Governor Sanwo-Olu had initially submitted a ₦4.237 trillion spending plan on November 25, 2025, aiming to accelerate economic growth, enhance infrastructure, and maintain fiscal responsibility. The proposed revenue totaled about ₦3.99 trillion, with ₦3.12 trillion expected from internally generated revenue and ₦874 billion from federal allocations. The planned deficit financing stood at approximately ₦243.3 billion.