Governor Babajide Sanwo-Olu has presented a record-breaking budget proposal of N4.237 trillion for the 2026 fiscal year to the Lagos State House of Assembly.
This bold financial plan, titled the “Budget of Shared Prosperity,” is the largest in the state's history and focuses heavily on building new infrastructure.
A major portion of the budget is dedicated to capital projects. The governor proposed spending N2.185 trillion on capital expenditure, which represents about 52 percent of the total budget.
This money will fund long-term development projects like roads, bridges, schools, and hospitals.
The remaining N2.052 trillion, or roughly 48 percent, is set aside for recurrent expenditure. This covers the daily costs of running the government, including paying civil servants' salaries, overhead costs, and servicing the state's debts.
To fund this massive plan, the Lagos State government projects a total revenue of N3.993 trillion.
A significant part of this income, N3.119 trillion, is expected to come from Internally Generated Revenue (IGR), such as taxes collected within the state.
The remaining N874 billion is expected to come from federal transfers.
Governor Sanwo-Olu noted that the planned spending is slightly higher than the expected income, leaving a deficit of N243.3 billion.
The government plans to bridge this gap through deficit financing, meaning it will borrow about 5.7 percent of the budget to ensure all projects are completed.
Speaking to lawmakers on Tuesday, the governor said this budget—the last full-year plan of his administration—is designed to distribute wealth and opportunities evenly across the state.
The House of Assembly will now review the proposal before passing it into law.
