.says state secured N1trn new investment in 2025, projects N3.12trn IGR next year
By Our Reporter
Lagos State Governor, Mr. Babajide Sanwo-Olu, has proposed N4.237 trillion expenditure in 2026 for passage by the State House of Assembly, laying bare his administration's priorities for the state in the coming year.
The 2026 expenditure is made up of recurrent expenditure of N2,052 trillion, representing 48 per cent of the total budget, and a capital expenditure of N2,185 trillion, which represents 52 per cent of the budget.
Governor Sanwo-Olu, who on Tuesday, presented the proposal, christened "Budget of Shared Prosperity," to the House of Assembly, said the budget would be anchored on four key pillars of growth — a human-centred approach, modern infrastructure, a thriving economy and effective governance, which, he noted, aligned with his administration’s T.H.E.M.E.S+ Agenda and the parastatal monitoring framework.
The governor pointed out that the 2026 expenditure was designed to widen access to opportunity, deepen social support systems, expand job creation, accelerate infrastructure delivery, and push new frontiers of development.
Sanwo-Olu said his administration planned to substantially finance the expenditure from a projected Internally Generated Revenue (IGR) of N3.12 trillion and Federal transfer, saying that the balance would be augmented by issuance of bonds and loans that would be within the state’s fiscal sustainability parameters.
According to him, the N4 trillion budget threshold reflected the growth of the state’s demands and the need to boost productivity to further energise the economy, saying that a capital expenditure of N1.372 trillion had been earmarked to Economic Affairs sector, a cluster of key MDAs, comprising Tourism and Creative Arts, Agriculture, Transportation, Works and Infrastructure, Industry and Investments, Wealth Creation and Employment, Energy and Mineral Resources, Waterfront Infrastructure, and Commerce.
The governor said that the state government would, in 2026, be expanding access to quality education, strengthening healthcare, widening social protection and accelerating affordability in housing, adding that the focus would shift from building infrastructure to integrating it.
This was just as he assured that
Lagosians would witness unprecedented interventions in urban renewal and waste management systems in order to bolster the state’s flood resilience, saying that there would be a push for project completion, while advancing smart city solutions for better connectivity, traffic management and public service delivery.
He added that the state would accelerate economic growth by strengthening MSMEs, encouraging circular economy initiatives, empowering start-ups, advancing innovation across sectors, while supporting women, youth, and older persons living with disabilities.
"Today, our Lagos stands tall as a continental economic powerhouse, Africa’s second-largest city economy after Cairo in Egypt. This status is no accident; it is the product of consistency, productivity, and the unyielding Lagos spirit. Our state is maturing, diversifying, and embracing new frontiers across investment, tourism, technology, and sustainable innovation.
"As we prepare for the next phase of growth, our mission is to eradicate poverty, expand opportunity, and build a Lagos that works for everyone. This is why the 2026 Budget of Shared Prosperity is anchored on four strategic pillars that align with the evolved T.H.E.M.E.S+ Agenda and the Parastatal Monitoring Framework.
"The Year 2026 Budget as proposed has a total budget size of N4,237,107,009,308, from which comprises a total revenue of N3,993,774,552,141 and deficit financing of N243,332,457,167.
"We will push major projects to completion, expand drainage systems, and advance smart city solutions for better connectivity, traffic management, sustainable housing, and public service delivery. Our aim is to fast-track the transformation of Lagos into an engine of opportunity and a global hub for innovation, trade, and enterprise," the governor stated.
Highlighting the sectoral allocation in the 2026 Budget proposal, Governor Sanwo-Olu said a total sum of N147 billion would be spent on security, just as he proposed N249 billion on Education, while Health was raised to N339 billion, with N236 billion allocated to the Environment.
Sanwo-Olu, in the new budget, earmarked N124 billion for Housing, N848 billion for the General Public Service sector, N55 billion for Recreation and N70 billion for Social Protection.
"The Year 2026 Appropriation Bill is a reaffirmation of our collective belief that Lagos can continue to rise, continue to lead, and continue to create opportunities for every resident. Next year will be the last full year of our administration, making it a pivotal period for consolidating our legacy and ensuring a strong, successful finish.
"We remain determined to complete all ongoing and initiated projects, and we will continue to engage Lagosians so that their priorities consistently guide our actions.
"Having consistently laid solid foundations in the past years, we are now moving into a phase of accelerated impact. The investments we are making are deliberate, inclusive, future-focused, and prosperity-driven," he stated.
On the performance of the current year budget, Sanwo-Olu said Lagos had implemented 81 per cent of the 2025 budget as at the last day of September, with actual capital expenditure standing at N1,238 trillion.
This was just as he disclosed that the state, in 2025, secured over N1 trillion in new investment commitments, noting that the development reflected heightened investor confidence and the impact of his administration's forward-looking industrial agenda.
Governor Sanwo-Olu, however, asserted that the reforms embarked upon by President Bola Ahmed Tinubu had created new revenue pathways for Lagos to meet its growing needs, stressing that the president’s Renewed Hope Agenda had been bearing fruits despite the challenges facing the country.
The governor thanked the Assembly members for being "dependable partner" for their cooperation, oversight function and commitment to the greater good of Lagos.
He also acknowledged the diligence of the state’s workforce for effective execution and implementation of his administration’s vision, which, he said, had produced transformational results for Lagos.
The Speaker, Lagos State House of Assembly, Hon. Mudashiru Obasa, described the proposal as "comprehensive budget," noting that it aligned with Lagos’ aspirations for growth and development.
Obasa said the budget prioritised critical sectors fundamental to sustaining Lagos’ position as Africa’s leading economic hub, pledging that the Assembly would thoroughly scrutinise the document to ensure it matched Lagosians’ aspirations.
"We have all listened to the governor who has just explained how the wealth of our state will be utilised for our common good in 2026. The responsibility now lies with this honourable House to meticulously perform its constitutional duty.
"This Assembly will continue to play its role in complementing the executive’s efforts by enacting laws that enhance the quality of life of our residents, particularly in the areas of socio-economic growth, local government reform, and institutional development," he pledged.
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