Lagos State Governor Babajide Sanwo-Olu has presented a groundbreaking N4.237 trillion appropriation bill for the 2026 fiscal year to the State House of Assembly. Dubbed the 'Budget of Shared Prosperity,' this record-breaking proposal marks the administration's final full-year budget, emphasizing completion of legacy projects and ensuring economic benefits reach all residents.
Budget Breakdown and Strategic Focus
Governor Sanwo-Olu, speaking during the presentation on Tuesday, outlined that the budget rests on four strategic pillars: A Human-Centred Approach, Modern Infrastructure, A Thriving Economy and Effective Governance. These pillars align with the evolved T.H.E.M.E.S+ Agenda that has guided the administration's development plans.
The 2026 budget represents a significant leap from the N2.525 trillion prorated estimate for 2025, demonstrating the government's aggressive development stance. The detailed breakdown shows:
Total Budget Size: N4,237,107,009,308
Total Revenue Target: N3,993,774,552,141
Internally Generated Revenue (IGR): N3,119,774,552,141 (representing over 78% of total revenue)
Federal Transfer: N874,000,000,000
Deficit Financing: N243,332,457,167
Capital Investment Takes Priority
Continuing Lagos State's investment-focused fiscal strategy, the budget maintains higher allocation for capital projects over recurrent spending. The allocation shows N2,185,085,419,495 for capital expenditure compared to N2,052,021,589,812 for recurrent expenditure.
Governor Sanwo-Olu emphasized that this budget marks a crucial shift from growth for some to growth for all. The design focuses on widening access to opportunities, deepening social support systems and accelerating infrastructure delivery across the state.
The sectoral allocation highlights the administration's clear priorities, with the largest single allocation going to Economic Affairs. This substantial funding aims to drive the integration of modern infrastructure linking roads, rail, waterways and digital networks into a cohesive functional ecosystem.
A major infrastructure milestone highlighted was the signing of the Memorandum of Understanding for the Green Line Rail, which will connect Marina to Lekki/Ajah, significantly improving transportation across the state.
Strong Performance of 2025 Budget
Before presenting the 2026 figures, Governor Sanwo-Olu reviewed the performance of the 2025 Budget of Sustainability. The state achieved an impressive 81% implementation rate of the prorated estimate as of September 30, 2025.
The detailed performance shows:
Total Implemented: N2,056,777,671,591
Capital Expenditure Performance: 90% of prorated estimate (N1.238 trillion actual spend)
Recurrent Expenditure Performance: 84% of prorated estimate (N818.5 billion actual spend)
Notable achievements in 2025 included the completion of the Badagry Maternal and Childcare Centre, over 250 educational infrastructure projects, and the monumental ₦500 billion Lagos Uptake Guarantee Fund - the largest subnational food-systems intervention in Nigeria's history.
Speaker of the House, Dr. Mudashiru Ajayi Obasa, praised the Governor's consistent track record and resourcefulness. He highlighted that the Assembly's approval of a ₦125 billion bond in 2025, which was oversubscribed by 170%, reflected combined fiscal discipline, transparency and credibility.
Obasa also commended the establishment of the Lagos State School of Health Science and Medicine as a necessary measure to combat the 'japa' syndrome (brain drain) among health workers. He assured Lagosians that the House would meticulously scrutinize the N4.237 trillion proposal to ensure it aligns with the state's aspirations for sustained economic resilience and inclusive growth.
