Lagos Assembly Approves Record-Breaking ₦4.4 Trillion 2026 Budget

The Lagos State House of Assembly has approved the ₦4.4 trillion 2026 Appropriation Bill, dubbed the “Budget of Shared Prosperity,” representing an increase of ₦171 billion over the initial proposal submitted by Governor Babajide Sanwo-Olu.....KINDLY READ THE FULL STORY HERE▶

The approval followed the adoption of the report by the House Committee on Economic Planning and Budget during plenary on Thursday. The budget prioritizes infrastructure, education, healthcare, economic growth, and social development, with over 52% of the total allocation earmarked for capital expenditure to promote inclusive growth across the state.

For the 2026 fiscal year, the approved budget consists of ₦2.052 trillion for recurrent expenditure and ₦2.185 trillion for capital projects, reflecting the government’s commitment to sustaining infrastructure and improving service delivery.

Presenting the report, Committee Chairman Hon. Sa’ad Olumoh said the budget marks the third cycle under the current administration and the final new-cycle budget of Governor Sanwo-Olu’s second term. He explained that it aligns with four strategic pillars: human-centered development, modern and adaptive infrastructure, a thriving 21st-century megacity economy, and effective governance that exceeds citizens’ expectations.

The budget framework was informed by key macroeconomic indicators, including an exchange rate of ₦1,512 to the dollar, an inflation rate of 14.7%, oil production of 2.06 million barrels per day, and a benchmark oil price of $64 per barrel.

The committee also reviewed the 2025 budget performance, reporting an overall implementation level of 79% by November 2025, with capital expenditure at 75% and recurrent spending at 87%.

The 2026 budget includes provisions for personnel costs, overheads, debt servicing, and repayment, projecting a deficit of ₦243 billion to be financed through approved deficit financing mechanisms.

Governor Sanwo-Olu had initially presented a ₦4.237 trillion proposal on November 25, 2025, emphasizing the goal of promoting shared prosperity and an inclusive Lagos. Lawmakers described the budget as realistic and growth-oriented, with an additional ₦171 billion added during legislative review.

Hon. Femi Saheed highlighted that the budget’s size and structure demonstrate Lagos State’s strong economic foundation, while Hon. Gbolahan Yishawu stressed the importance of revenue reforms and prudent loan management to further strengthen fiscal stability. Relevant officials assured the Assembly that revenue-generating agencies would cooperate to achieve, and potentially exceed, projected revenues for 2026.

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