Lagos Governor Unveils Ambitious N4.23 Trillion Spending Plan for 2026
Lagos State Governor, Babajide Sanwo-Olu, has presented a landmark budget proposal of N4.237 trillion for the 2026 fiscal year to the state's House of Assembly. Dubbed the "Budget of Shared Prosperity," this financial plan, submitted on November 26, 2025, is designed to solidify the administration's legacy in its final full year, with a significant portion allocated to servicing the state's debt.
Breaking Down the N4.23 Trillion Budget
The governor outlined that the massive budget will see debt commitments consuming over N700 billion. A detailed breakdown shows that N243.3 billion is earmarked for deficit financing, N143.8 billion for debt servicing, and a substantial N383.4 billion for direct debt repayments.
To finance this expenditure, the state projects a total revenue of N3.993 trillion. A lion's share of this revenue, N3.119 trillion, is expected to come from Internally-Generated Revenue (IGR), while federal allocations are projected at N874 billion. The gap between revenue and expenditure creates a deficit financing need of N243 billion.
In terms of expenditure type, the budget prioritizes capital projects, with N2.185 trillion set aside for capital expenditure. Recurrent expenditure, which covers day-to-day operational costs, is estimated at N2.052 billion.
Sectoral Allocations and Strategic Focus
The "Budget of Shared Prosperity" allocates funds across critical sectors to drive development. Key allocations include:
- Economic Affairs: N1.372 trillion
- General Public Services: N847 billion
- Health: N338 billion
- Education: N249 billion
- Environment: N235.9 billion
- Housing: N123.7 billion
- Public Order and Safety: N147 billion
Governor Sanwo-Olu emphasized a strategic shift for 2026. "Our focus will shift from building infrastructure to integrating it," he stated. The plan is to link roads, rail, waterways, energy, and digital networks into a single, functional ecosystem. This involves pushing major projects to completion, expanding drainage, and advancing smart city solutions for better traffic management and public service delivery.
Furthermore, the governor highlighted plans to accelerate economic growth by strengthening MSMEs, encouraging a circular economy, and empowering startups in sectors like agribusiness, manufacturing, technology, and the creative industries. The ultimate goal is to fast-track Lagos's transformation into a global hub for innovation, trade, and enterprise.
Legislative Scrutiny and Commendation
In his response, the Speaker of the House, Dr. Mudashiru Obasa, praised Governor Sanwo-Olu's consistent track record and resourcefulness. He pointed to the Assembly's recent approval of a N125 billion bond, which was oversubscribed by 170 percent, as a direct reflection of the state's fiscal discipline and credibility.
Speaker Obasa also commended the establishment of the Lagos State School of Health Science and Medicine, viewing it as a vital measure to combat the brain drain, popularly known as the 'japa' syndrome, among health workers. He assured residents 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.
