Lagos State Governor, Babajide Sanwo-Olu, on Tuesday presented a record-breaking N4.237 trillion budget proposal for the 2026 fiscal year to the Lagos State House of Assembly in Ikeja.
The proposal marks a significant increase of more than N1 trillion compared to the N3.005 trillion budget for 2025, which was presented last November.
Tagging the proposal as the “Budget of Shared Prosperity,” Sanwo-Olu said Lagos stands tall as a continental economic powerhouse — Africa’s second-largest city economy after Cairo.
“This budget is proposed at a total size of N4.237 trillion. This budget comprises a total revenue of N3.993 trillion, which has only a deficit financing of N243.332 billion. We also have a total revenue comprising totally internally generated revenue of N3.119 trillion and total federal transfers of N874 billion,” the governor stated.
The governor proposed capital expenditure of N2.185 trillion and recurrent expenditure of N2.055 trillion, covering overheads, personnel, and debt servicing.
Breaking down the recurrent spending, Sanwo-Olu explained that the overhead costs is N698.891 billion, subventions N201.216 billion, dedicated expenditure N184.139 billion, with a total overhead allocation amounting to N1.084 trillion
Personnel costs were pegged at N440.449 billion, while debt servicing included N143.876 billion in recurring debt charges and N383.404 billion for debt repayment.
Sanwo-Olu further broke down the allocations across key sectors: General Public Service: N847.472 billion, Public Order and Safety N147.040 billion, Economic Affairs N1.372 trillion, Environment N235.957 billion, and Housing: N123.760 billion.
Others are; Health N338.449 billion, Education N249.132 billion, Recreation and Culture N54.682 billion, and Social Protection N70.024 billion.
These allocations reflect the administration’s priorities in infrastructure, human capital development, and social welfare. The proposal will now undergo legislative scrutiny before passage into law.
Lagos State has seen its IGR grow from N815.86 billion in 2023 to N1.26 trillion in 2024.
The governor said as at the third quarter of 2025, the state had implemented N2.056 trillion of the 2025 Budget, representing 81% of the prorated estimate of N2.525 trillion.
He said actual capital expenditure stood at N1.238 trillion, representing 90% of the prorated estimate of N1.553 trillion. The state’s IGR grew from N815.86 billion in 2023 to N1.26 trillion in 2024.