Lagos Government Presents ₦4.237 Trillion ‘Budget of Shared Prosperity’ for Lagos in 2026
Lagos State Governor Babajide Sanwo-Olu has presented a ₦4.237 trillion budget proposal for the 2026 fiscal year to the Lagos State House of Assembly, outlining an ambitious plan designed to strengthen infrastructure, expand economic opportunities, and enhance social welfare across Africa’s second-largest city economy.
The proposal, presented on Tuesday in Ikeja, marks the state’s largest budget to date and reflects a year-on-year increase of more than ₦1 trillion compared to the ₦3.005 trillion approved for 2025.
Record Budget Anchored on Revenue Growth and Strategic Investments
Governor Sanwo-Olu described the 2026 plan as the “Budget of Shared Prosperity,” noting that Lagos continues to consolidate its position as a continental economic hub. The proposal carries a total revenue projection of ₦3.993 trillion, supported by a deficit financing requirement of ₦243.332 billion.
The state expects internally generated revenue of ₦3.119 trillion and federal transfers totalling ₦874 billion. According to the governor, these projections reflect Lagos’ expanding revenue base and the administration’s reforms in fiscal management.
Capital and Recurrent Expenditure Allocation
The proposal allocates ₦2.185 trillion to capital expenditure and ₦2.055 trillion to recurrent expenditure, underscoring the administration’s emphasis on infrastructure development and fiscal sustainability.
Breakdown of recurrent spending includes:
Overhead costs: ₦698.891 billion
Subventions: ₦201.216 billion
Dedicated expenditure: ₦184.139 billion
Total overhead allocation: ₦1.084 trillion
Personnel costs are projected at ₦440.449 billion, while debt servicing comprises ₦143.876 billion in recurring charges and ₦383.404 billion for debt repayment.
Sectoral Breakdown Reflects Growth and Social Investment Priorities
Sanwo-Olu outlined sectoral allocations designed to support human capital development, transport infrastructure, public safety, and environmental management. Key allocations include:
General Public Service: ₦847.472 billion
Public Order and Safety: ₦147.040 billion
Economic Affairs: ₦1.372 trillion
Environment: ₦235.957 billion
Housing: ₦123.760 billion
Health: ₦338.449 billion
Education: ₦249.132 billion
Recreation and Culture: ₦54.682 billion
Social Protection: ₦70.024 billion
The Economic Affairs allocation driven largely by infrastructure, transport, and economic stimulus initiatives—accounts for the largest share of the proposed budget.
Budget Backed by Strong Fiscal Performance in 2025
According to data presented by the governor, Lagos executed ₦2.056 trillion of the 2025 budget as of the third quarter, representing 81% of the prorated estimate. Actual capital expenditure reached ₦1.238 trillion, equivalent to 90% of the prorated target.
The state’s revenue performance has also strengthened Internally generated revenue increased from ₦815.86 billion in 2023 to ₦1.26 trillion in 2024, reinforcing Lagos' ability to sustain its large-scale fiscal commitments.
Conclusion
The budget proposal now moves to the Lagos State House of Assembly for legislative scrutiny, public engagement, and eventual passage into law.
Lagos’ ₦4.237 trillion budget proposal for 2026 signals the administration’s commitment to long-term infrastructure expansion, improved public services, and accelerated economic growth. With strong revenue projections and sustained capital investment, the plan positions Lagos to deepen its role as a leading economic centre in Africa while addressing the growing needs of its expanding population.
