Lagos State Governor, Babajide Sanwo-Olu, on Tuesday presented a record-breaking N4.237 trillion budget proposal for the 2026 fiscal year to the Lagos State House of Assembly in Ikeja. The Sanwo-Olu 2026 budget proposal marks a significant increase of over N1 trillion compared to the N3.005 trillion 2025 budget.
Sanwo-Olu described the plan as the “Budget of Shared Prosperity”, emphasizing its focus on inclusive growth, infrastructure development, and social investment. The Sanwo-Olu 2026 budget proposal aims to balance these priorities.
Revenue and Deficit Overview
The governor stated that the Sanwo-Olu 2026 budget proposal comprises total revenue of N3.993 trillion, leaving a deficit of N243.332 billion to be financed. Revenue sources include:
- Internally Generated Revenue (IGR): N3.119 trillion
- Federal Transfers: N874 billion
The modest deficit reflects Lagos State’s strategy of balancing ambitious investments with sustainable financing in the context of the Sanwo-Olu 2026 budget proposal.
Capital and Recurrent Expenditure
Sanwo-Olu proposed capital expenditure of N2.185 trillion, aimed at boosting infrastructure projects and developmental initiatives, while recurrent expenditure of N2.055 trillion will cover government operations, personnel, and debt servicing.
Breakdown of recurrent expenditure:
- Overhead costs: N698.891 billion
- Subventions: N201.216 billion
- Dedicated expenditure: N184.139 billion
- Total overhead allocation: N1.084 trillion
- Personnel costs: N440.449 billion
- Debt servicing: N143.876 billion (recurring) + N383.404 billion (debt repayment)
Sectoral Allocations Reflect Key Priorities
The Sanwo-Olu 2026 budget proposal allocates funds to sectors critical to Lagos’ growth and social welfare:
- General Public Service: N847.472 billion
- Public Order and Safety: N147.040 billion
- Economic Affairs: N1.372 trillion
- Environment: N235.957 billion
- Housing: N123.760 billion
- Health: N338.449 billion
- Education: N249.132 billion
- Recreation and Culture: N54.682 billion
- Social Protection: N70.024 billion
These allocations highlight the administration’s commitment to human capital development, urban infrastructure, and citizen-focused social programs as a central theme of the Sanwo-Olu 2026 budget proposal.