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.

The committee chairman, Hon. Sa’ah Olumoh, presented the report during plenary on Thursday, detailing the assumptions, projections, and structure of the 2026 Appropriation Bill, tagged the “Budget of Shared Prosperity.”

According to the report, the 2026 budget represents 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.

Hon. Olumoh noted that the budget framework was informed by 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 budget 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, with proposed recurrent expenditure of ₦2.052 trillion and capital expenditure of ₦2.185 trillion. The capital component represents a significant portion of the budget, underscoring the state government’s commitment to infrastructure development.

The budget includes 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.

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

Hon. 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, Hon. Gbolahan Yishawu, representing Eti-Osa Constituency II, highlighted the importance of revenue reforms and prudent loan repayment structures, noting that effective implementation would 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 and passed the 2026 Appropriation Bill into law.

The House also took the third reading and passed the budget.

Recall that Governor Babajide Sanwo-Olu had presented a ₦4.237 trillion spending plan to the House on November 25, 2025. Presenting the proposal, the governor said 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.