The Lagos State House of Assembly has passed Governor Babajide Sanwo-Olu’s 2026 budget into law after increasing the proposed amount by an additional ₦162.89 billion, raising the original ₦4.237 trillion proposal to a total of ₦4.4 trillion.
Presented by Governor Sanwo-Olu in November 2025 under the theme “Budget of Shared Prosperity,” the fiscal plan prioritises infrastructure, education, healthcare, economic growth, and social development.
More than 52 per cent of the total allocation is dedicated to capital projects, reflecting a deliberate strategy to promote long-term and inclusive growth across the state.
The Chairman of the House Committee on Economic Planning and Budget, Sa’ad Olumoh, presented the committee’s report during plenary on Thursday, outlining the assumptions, projections, and structure of the 2026 Appropriation Bill.
According to the report, the 2026 budget is the third budget cycle of the current administration and the final new-cycle budget of Governor Babajide Sanwo-Olu’s second term.
The budget aligns with the administration’s development agenda, anchored on four strategic pillars: human-centric development, modern and adaptive infrastructure, a thriving 21st-century megacity economy, and effective governance that exceeds citizens’ expectations.
Olumoh stated that the budget framework was informed by key macroeconomic indices, including an exchange rate benchmark of ₦1,512 to the dollar, an 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 committee also reviewed the 2025 budget performance, reporting a cumulative performance rate of 79 per cent as of November 2025. Capital expenditure performance stood at 75 per cent, recurrent expenditure at 87 per cent, while overall revenue performance was placed at 79 per cent.
The budget makes provisions for personnel costs, overheads, debt servicing, and debt repayment, with a projected deficit of about ₦243 billion to be financed through approved deficit financing options.
During deliberations, lawmakers commended the budget, describing it as realistic and growth-oriented.
Aro Moshood disclosed that an additional ₦171 billion was added to the budget during the review process.
Femi Saheed noted that the size and structure of the budget indicated that Lagos State remained on a strong economic footing, provided all stakeholders played their respective roles.
Similarly, Gbolahan Yishawu, representing Eti-Osa Constituency II, emphasised the need for revenue reforms and prudent loan repayment structures, adding that effective implementation would further strengthen the state’s fiscal position.
The Assembly also received assurances from relevant officials that revenue-generating agencies would collaborate to ensure projected revenues are met and possibly exceeded.
Following deliberations, the House adopted the committee’s report, conducted the third reading, and passed the 2026 Appropriation Bill into law.
