The Lagos State House of Assembly has passed a N4.44 trillion budget for the 2026 fiscal year, approving the state government’s “Budget of Shared Prosperity.”
This is according to deliberations and resolutions reached during plenary following the adoption of the House Committee on Economic Planning and Budget’s report.
The budget outlines key macroeconomic assumptions, expenditure priorities, and a deficit financing plan aimed at sustaining economic growth and infrastructure development in Nigeria’s commercial capital.
Presenting the committee’s report, Chairman of the House Committee on Economic Planning and Budget, Mr. Sa’ad Olumoh, disclosed that the 2026 budget framework was guided by prevailing macroeconomic indices.
These include an exchange rate benchmark of N1,512 to the dollar, an inflation rate assumption of 14.7%, daily oil production of 2.06 million barrels, and a benchmark oil price of $64 per barrel.
Olumoh noted that the committee also reviewed the state’s 2025 budget performance, which recorded a cumulative performance of 79% as of November 2025.
Capital expenditure performance stood at 75%, recurrent expenditure at 87%, while overall revenue performance was also placed at 79%.
For the 2026 fiscal year, the approved N4.44 trillion budget consists of N2.052 trillion in recurrent expenditure and N2.185 trillion in capital expenditure.
According to the committee, the capital allocation reflects the state government’s continued focus on infrastructure development across critical sectors.
The budget provides for personnel costs, overheads, debt servicing, and loan repayments, with a projected deficit of about N243 billion.
Olumoh explained that the deficit would be financed through approved borrowing and financing options.
During legislative review, lawmakers also disclosed that an additional N171 billion was added to the budget proposal.
Mr. Aro Moshood, representing Ikorodu 2, confirmed the adjustment, while other lawmakers emphasized the importance of revenue reforms and prudent debt management to ensure fiscal sustainability.
Speaker of the House, Mr. Mudashiru Obasa, described the budget as realistic and balanced, stating that it has the capacity to drive inclusive economic growth if properly implemented. He added that revenue-generating agencies had assured the House of improved collaboration to meet, and possibly exceed, revenue projections.
Lagos State remains Nigeria’s largest sub-national economy, and the size and structure of its budget often signal broader economic confidence.
With capital expenditure nearly matching recurrent spending, the 2026 budget reinforces the state’s commitment to infrastructure-led growth at a time of economic uncertainty, rising inflation, and fiscal pressure on states.
With capital expenditure nearly matching recurrent spending, the 2026 budget reinforces the state’s commitment to infrastructure-led growth at a time of economic uncertainty, rising inflation, and fiscal pressure on states.
The projected deficit and reliance on internally generated revenue also highlight the importance of efficient tax administration, revenue reforms, and disciplined spending to maintain Lagos’ fiscal health.
Governor Babajide Sanwo-Olu originally presented a N4.237 trillion budget proposal to the House on November 25.
The governor projected total revenue of N3.99 trillion, comprising N3.12 trillion from internally generated revenue and N874 billion from federal transfers.
The deficit financing plan for 2026 stands at approximately N243.3 billion.