Sanwo-Olu proposes N4tn budget to drive key growth

• State secured N1 trillion new investment in 2025, projects N3.12trn IGR next year

• Tinubu’s reforms bolster Lagos revenue drive — Governor

Lagos State Governor Babajide Sanwo-Olu has proposed a N4.237 trillion expenditure for 2026, outlining the State Government’s priorities for the coming year.

Sanwo-Olu said the budget would be anchored on four key pillars of growth — a human-centred approach, modern infrastructure, a thriving economy and effective governance — which, he noted, align with his administration’s T.H.E.M.E.S+ Agenda and the parastatal monitoring framework.

The governor, on Tuesday, presented the proposal, christened the “Budget of Shared Prosperity”, to the House of Assembly.

He explained that the 2026 expenditure was designed to widen access to opportunity, deepen social support systems, expand job creation, accelerate infrastructure delivery and push new frontiers of development.

Sanwo-Olu said the budget would be substantially financed through a projected Internally Generated Revenue (IGR) of N3.12 trillion and federal transfers. At the same time, the balance would be augmented through the issuance of bonds and loans within the State’s fiscal sustainability parameters. The N4 trillion threshold, he added, reflected the growing demands of the State and the need to boost productivity to energise the economy further.

The governor earmarked a capital expenditure of N1.372 trillion for the Economic Affairs sector — a cluster of key MDAs comprising Tourism and Creative Arts, Agriculture, Transportation, Works and Infrastructure, Industry and Investments, Wealth Creation and Employment, Energy and Mineral Resources, Waterfront Infrastructure and Commerce.

In 2026, he said, the state would expand access to quality education, strengthen healthcare, widen social protection and improve housing affordability. He added that the focus would shift from building infrastructure to integrating it.

Gboyega Akosile, Special Adviser – Media and Publicity to Governor Sanwo-Olu, stated that Lagosians would witness unprecedented interventions in urban renewal and waste management systems to bolster the State’s flood resilience. He said there would be an intensified push for project completion while advancing smart city solutions for better connectivity, traffic management and public service delivery.

He added that the State would accelerate economic growth by strengthening MSMEs, encouraging circular economy initiatives, empowering start-ups, advancing innovation across sectors and supporting women, youth and older persons living with disabilities.

He said: “Today, our Lagos stands tall as a continental economic powerhouse — Africa’s second-largest city economy after Cairo in Egypt. This status is no accident; it is the product of consistency, productivity and the unyielding Lagos spirit. Our State is maturing, diversifying and embracing new frontiers across investment, tourism, technology and sustainable innovation.

“As we prepare for the next phase of growth, our mission is to eradicate poverty, expand opportunity and build a Lagos that works for everyone. This is why the 2026 Budget of Shared Prosperity is anchored on four strategic pillars that align with the evolved T.H.E.M.E.S+ Agenda and the Parastatal Monitoring Framework.

“The Year 2026 Budget, as proposed, has a total size of N4,237,107,009,308, comprising a total revenue of N3,993,774,552,141 and deficit financing of N243,332,457,167. We will push major projects to completion, expand drainage systems and advance smart city solutions for better connectivity, traffic management, sustainable housing and public service delivery. We aim to fast-track the transformation of Lagos into an engine of opportunity and a global hub for innovation, trade and enterprise.”

The 2026 expenditure consists of a recurrent expenditure of N2.052 trillion, representing 48 per cent of the total budget, and a capital expenditure of N2.185 trillion, representing 52 per cent.

Highlighting the sectoral allocation in the 2026 budget, the State Government will spend N147 billion on security, while the governor proposed N249 billion for education. Health expenditure has been raised to N339 billion, and the State plans to spend N236 billion on the environment.

Sanwo-Olu earmarked N124 billion for housing, N848 billion for the General Public Service sector, N55 billion for recreation and N70 billion for social protection.

The governor said: “The Year 2026 Appropriation Bill is a reaffirmation of our collective belief that Lagos can continue to rise, continue to lead and continue to create opportunities for every resident. Next year will be the last full year of our administration, making it a pivotal period for consolidating our legacy and ensuring a strong, successful finish.

“We remain determined to complete all ongoing and initiated projects, and we will continue to engage Lagosians so that their priorities consistently guide our actions. Having laid solid foundations over the past years, we are now moving into a phase of accelerated impact. The investments we are making are deliberate, inclusive, future-focused and prosperity-driven.”

Speaking on the performance of the current-year budget, Sanwo-Olu said Lagos had implemented 81 per cent of the 2025 budget as of September 30, with actual capital expenditure standing at N1.238 trillion.

In 2025, the governor disclosed, Lagos secured over N1 trillion in new investment commitments, noting that this reflected heightened investor confidence and the impact of the State’s forward-looking industrial agenda.

Sanwo-Olu added that the reforms embarked upon by President Bola Ahmed Tinubu had created new revenue pathways for Lagos to meet its growing needs, stressing that the President’s Renewed Hope Agenda was already bearing fruit despite national challenges.

The governor thanked members of the Assembly for being “dependable partners” and appreciated their cooperation, oversight and commitment to the greater good of Lagos. He also commended the diligence of the State’s workforce for the effective execution of his administration’s vision, which, he said, had produced transformational results for Lagos.

The Speaker of the House, Rt. Hon. Mudashiru Obasa described the proposal as a “comprehensive budget”, noting that it aligned with Lagos’ aspirations for growth and development. He said the budget prioritised critical sectors essential to sustaining Lagos’ position as Africa’s leading economic hub.

Obasa pledged that the Assembly would thoroughly scrutinise the 2026 budget to ensure it aligned with the aspirations of Lagosians.

He said: “We have all listened to the governor who has explained how the wealth of our State will be utilised for our common good in 2026. The responsibility now lies with this honourable House to meticulously perform its constitutional duty.

“This Assembly will continue to play its role in complementing the executive’s efforts by enacting laws that enhance the quality of life of our residents, particularly in the areas of socio-economic growth, local government reform and institutional development.”