The Lagos State House of Assembly has passed the ₦4.4 trillion 2026 Appropriation Bill, tagged the “Budget of Shared Prosperity,” with an upward review of ₦171 billion above the initial proposal submitted by Governor Babajide Sanwo-Olu.
Naijaonpoint reports that the approval followed the adoption of the report of the House Committee on Economic Planning and Budget during plenary on Thursday.
The budget places emphasis on infrastructure development, education, healthcare, economic expansion and social development, with over 52 per cent of the total allocation dedicated to capital expenditure to drive inclusive growth across the state.
For the 2026 fiscal year, the approved budget size stands at about ₦4.4 trillion, comprising ₦2.052 trillion for recurrent expenditure and ₦2.185 trillion for capital expenditure.
The capital component underscores the state government’s commitment to sustaining infrastructure development and improving service delivery.
Presenting the report, the committee chairman, Hon. Sa’ad Olumoh, explained that the 2026 budget represents the third budget cycle of the current administration and the final new-cycle budget of Governor Sanwo-Olu’s second term.
According to him, the budget aligns with the administration’s development agenda, anchored in four strategic pillars: human-centric development, modern and adaptive infrastructure, a thriving 21st-century megacity economy, and effective governance that exceeds citizens’ expectations.
Olumoh disclosed that the budget framework was informed by critical macroeconomic indicators, 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 performance of the 2025 budget, reporting a cumulative implementation level 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 also put at 79 per cent.
The budget made 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.
Naijaonpoint reports that Governor Sanwo-Olu had on Tuesday, November 25, 2025, presented a proposed ₦4.237 trillion budget to the 40-member House, tagging it the “Budget of Shared Prosperity.”
Addressing lawmakers, the governor said the proposal was aimed at promoting shared prosperity and building an inclusive Lagos.
“Our mission remains clear, to eradicate poverty and build a Lagos that works for all,” Sanwo-Olu said.
He reiterated that the budget was anchored on a human-centred approach, modern infrastructure, a thriving economy, and good governance.
During deliberations, lawmakers described the budget as realistic and growth-oriented.
Moshood disclosed that an additional ₦171 billion was added to the proposal during the legislative review process.
Hon. Femi Saheed noted that the size and structure of the budget showed that Lagos State remained on a strong economic footing, provided all stakeholders played their roles.
Similarly, Hon. Gbolahan Yishawu, representing Eti-Osa Constituency II, emphasised the need for sustained 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 that projected revenues were met and possibly exceeded in the 2026 fiscal year.