The Lagos State House of Assembly has taken a significant step towards approving the state's financial plan for the coming year. During a plenary session on Tuesday, December 2, 2025, lawmakers committed the 2026 Appropriation Bill to a committee for detailed review after a comprehensive debate on its merits.
Pillars of the Proposed Spending Plan
Governor Babajide Sanwo-Olu initially presented the budget, named the "Budget of Shared Prosperity," to the legislative house on November 25, 2025. The fiscal document is built on four key strategic foundations:
- Eradication of poverty
- A human-centred development approach
- Enhancement of infrastructure
- Effective governance systems
The overarching goal is to foster a safer and more economically vibrant Lagos. Sa’ad Olumoh, the Chairman of the House Committee on Economic Planning and Budget, informed the chamber that the 2026 plan aims to solidify the developmental progress achieved since Governor Sanwo-Olu's administration began in 2019. He gave assurances that the budget would provide funding for all ongoing projects to ensure their completion, preventing any from becoming a burden for a future administration.
Lawmakers' Praise and Sectoral Demands
The Majority Leader, Noheem Adams, praised the proposed budget, stating it reflects the increasing competence and capacity of the state government. He particularly endorsed the prioritisation of capital expenditure, viewing it as a sign of responsible, long-term planning that would significantly boost the state's economy upon passage.
However, the debate also featured calls for increased funding in specific areas. Lawmaker Desmond Elliot described the budget as one meant to meet the needs of Lagosians but urged a stronger focus on infrastructural development, specifically the rehabilitation of inner roads within local communities, alongside improvements in environmental sanitation.
Security concerns were highlighted by Osafile Foluke, who advocated for more resources for the security sector to tackle emerging challenges at both state and national levels. On education, the Deputy Majority Leader, Adedamola Richard Kasunmu, stressed the need for better funding to secure a brighter future for the youth.
Concerns and Calls for Diversification
Not all commentary was purely supportive. Member Ajomale Oladipo expressed reservations about how new tax reforms might affect the budget's performance, especially considering the state's impressive growth in Internally Generated Revenue (IGR), which now stands at 70 per cent.
In a push for economic diversification, Bonu Solomon emphasised the importance of investing in tourism and infrastructural development as viable strategies to further boost the state's internally generated revenue streams.
The Path Forward for the Appropriation Bill
Following the extensive deliberations, the Speaker of the House committed the Y2026 Appropriation Bill to the Committee on Economic Planning and Budget for further legislative action and line-by-line scrutiny. The committee has been directed to thoroughly examine the bill's details to ensure alignment with its stated goals and report back to the full house within five weeks. This marks a critical phase in the budgetary process as Lagos moves closer to finalising its spending plan for the 2026 fiscal year.
