Lagos Assembly passes ₦4.4 trillion 2026 budget

By : Shakirah Adunola

Date: 8 January 2026 7:38pm WAT

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The Lagos State House of Assembly

The Lagos State House of Assembly

The Lagos State House of Assembly has passed a ₦4.4 trillion budget for the 2026 fiscal year following the adoption of the report of the House Committee on Economic Planning and Budget.

Chairman of the committee, Sa’ad Olumoh, presented the report during plenary on Thursday, outlining the assumptions, projections, and structure of the 2026 Appropriation Bill, tagged the “Budget of Shared Prosperity.”

According to the report, the 2026 budget is the third budget cycle of the current administration and the final new-cycle budget of Governor Babajide Sanwo-Olu’s second term.

It is aligned with the administration’s development agenda, anchored on four strategic pillars: human-centric development, modern and adaptive infrastructure, a thriving 21st-century megacity economy, and effective governance that exceeds citizens’ expectations.

Olumoh said the budget framework was informed by key macroeconomic indices, including an exchange rate benchmark of ₦1,512 to the dollar, an inflation rate of 14.7 per cent, 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 a cumulative performance of 79 per cent as of November 2025. Capital expenditure performance stood at 75 per cent, recurrent expenditure at 87 per cent, while overall revenue performance was put at 79 per cent.

For the 2026 fiscal year, the approved budget size stands at about ₦4.4 trillion, comprising proposed recurrent expenditure of ₦2.052 trillion and capital expenditure of ₦2.185 trillion. The capital component represents a significant share of the budget, underscoring the state government’s commitment to infrastructure development.

The budget makes provisions for personnel costs, overheads, debt servicing and debt repayment, with a projected deficit of about ₦243 billion to be financed through approved deficit financing options.

During deliberations, lawmakers commended the budget, describing it as realistic and growth-oriented.

Aro Moshood disclosed that an additional ₦171 billion was added to the budget during the review process.

Femi Saheed said the size and structure of the budget showed that Lagos State remained on a strong economic footing, provided all stakeholders played their roles.

Similarly, Gbolahan Yishawu, representing Eti-Osa Constituency II, emphasised the importance of revenue reforms and prudent loan repayment structures, noting that effective implementation would further strengthen the state’s fiscal position.

The Assembly also received assurances from relevant officials that revenue-generating agencies would collaborate to ensure that projected revenues are met and possibly exceeded.

Following deliberations, the House adopted the committee’s report, took the third reading and passed the 2026 Appropriation Bill into law.

Governor Babajide Sanwo-Olu had earlier presented a ₦4.237 trillion spending proposal to the House on November 25, 2025, stating that the budget was designed to accelerate economic growth, deepen infrastructure development and maintain fiscal responsibility.

He disclosed that the budget projected total revenue of about ₦3.99 trillion, with ₦3.12 trillion expected from internally generated revenue and ₦874 billion from federal transfers, while the deficit financing plan stood at approximately ₦243.3 billion.

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