The Lagos State House of Assembly has passed the ₦4.4 trillion 2026 budget presented by Governor Babajide Sanwo-Olu, marking an increase of ₦171 billion over the original proposal.
The budget, tagged “Budget of Shared Prosperity,” places strong emphasis on infrastructure, education, healthcare, economic growth, and social development, with over 52 per cent allocated to capital projects aimed at driving inclusive growth across the state.
Approval followed the adoption of a report by the House Committee on Economic Planning and Budget, presented during plenary by its chairman, Hon. Sa’ad Olumoh. He explained that the 2026 budget is the third budget cycle of the current administration and the final new-cycle budget of Governor Sanwo-Olu’s second term.
According to the committee, the budget aligns with the state government’s development agenda built on four pillars: human-centred development, modern and adaptive infrastructure, a thriving 21st-century economy, and effective governance.
The budget assumptions include an exchange rate of ₦1,512 to the dollar, inflation rate of 14.7 per cent, oil production of 2.06 million barrels per day, and a benchmark oil price of $64 per barrel.
The Assembly also reviewed the 2025 budget performance, which recorded a cumulative implementation rate of 79 per cent as of November 2025. Capital expenditure stood at 75 per cent, recurrent expenditure at 87 per cent, while revenue performance was 79 per cent.
For 2026, the approved budget provides for ₦2.052 trillion in recurrent expenditure and ₦2.185 trillion in capital expenditure. It also includes allocations for personnel costs, overheads, debt servicing, and debt repayment, with a projected deficit of about ₦243 billion to be financed through approved borrowing options.
Governor Sanwo-Olu had initially presented a ₦4.237 trillion budget proposal to the Assembly on November 25, 2025, stating that the plan was designed to eradicate poverty and ensure shared prosperity across Lagos State.
During deliberations, lawmakers commended the budget, describing it as realistic and growth-oriented. Hon. Aro Moshood disclosed that ₦171 billion was added during legislative review, while Hon. Femi Saheed noted that the size and structure of the budget reflected Lagos State’s strong economic position.
Other lawmakers stressed the importance of revenue reforms, prudent loan management, and effective implementation to ensure the state achieves its fiscal and development goals in the 2026 financial year.
