The Lagos State House of Assembly has officially passed the N4.4 trillion budget for the 2026 fiscal year, marking a significant step in the state’s financial planning. This substantial budget, tagged the “Budget of Shared Prosperity,” was adopted following a thorough review by the House Committee on Economic Planning and Budget, presented by its chairman, Hon. Sa’ah Olumoh. The 2026 Appropriation Bill represents the third budget cycle under the current administration and is set to be the final new-cycle budget for Governor Babajide Sanwo-Olu’s second term, aligning with the administration’s core development agenda. This agenda is built upon four strategic pillars: fostering human-centric development, advancing modern and adaptive infrastructure, cultivating a thriving 21st-century megacity economy, and ensuring effective governance that consistently surpasses citizens’ expectations. What is the Lagos N4.4trn 2026 budget? The Lagos N4.4trn 2026 budget is the state’s financial plan for the upcoming fiscal year, focusing on shared prosperity, infrastructure development, and economic growth, passed by the State House of Assembly. The framework for this ambitious budget was carefully informed by key macroeconomic indices. These include an exchange rate benchmark set at ₦1,512 to the dollar, an anticipated inflation rate of 14.7 percent, a projected oil production of 2.06 million barrels per day, and a benchmark oil price of $64 per barrel. These figures provide a realistic foundation for the budget’s projections and financial strategies. The committee also provided a comprehensive review of the 2025 budget performance, reporting a cumulative performance of 79 percent as of November 2025. This indicates a strong execution rate, with capital expenditure performing at 75 percent, recurrent expenditure at 87 percent, and overall revenue performance at 79 percent, demonstrating the state’s capacity to manage its finances effectively. For the 2026 fiscal year, the approved budget size has been set at approximately N4.4 trillion. This figure is broken down into a proposed recurrent expenditure of N2.052 trillion and a capital expenditure of N2.185 trillion. The significant allocation to capital expenditure clearly underscores the state government’s unwavering commitment to enhancing and expanding its infrastructure. The budget also includes essential provisions for personnel costs, overheads, debt servicing, and debt repayment. A projected deficit of about ₦243 billion is anticipated, which is planned to be financed through approved deficit financing options, ensuring that necessary projects and operations can proceed without interruption. During the deliberations, lawmakers expressed commendation for the budget, characterizing it as both realistic and growth-oriented. Hon. Aro Moshood highlighted a notable detail, disclosing that an additional ₦171 billion was incorporated into the budget during the review process, indicating a dynamic and responsive fiscal approach. Hon. Femi Saheed emphasized that the scale and structure of the budget clearly demonstrate Lagos State’s continued strong economic footing. He stressed the importance of all stakeholders actively participating and fulfilling their respective roles to ensure the successful realization of the budget’s objectives. Similarly, Hon. Gbolahan Yishawu, representing Eti-Osa Constituency II, pointed out the critical importance of implementing effective revenue reforms and establishing prudent loan repayment structures. He noted that the successful execution of these measures would significantly strengthen the state’s overall fiscal position and long-term financial health. Assurances were also received from relevant officials during the assembly’s proceedings, confirming that revenue-generating agencies are committed to collaborating closely. This collaboration is aimed at ensuring that projected revenues are met, and ideally, exceeded, providing additional resources for development and public services. Following these extensive deliberations and the incorporation of valuable feedback, the House officially adopted the committee’s report. This adoption led to the successful passage of the 2026 Appropriation Bill into law, cementing the financial blueprint for the state. The House then proceeded to the third reading and formal passage of the budget, a crucial step that finalizes the legislative process. This signifies the official enactment of the budget, empowering the executive to begin its implementation. It is worth recalling that Governor Babajide Sanwo-Olu had initially presented an estimated budget of N4.237 trillion to the House on November 25, 2025. This initial proposal laid the groundwork for the subsequent detailed review and adjustments. In his presentation of the initial proposal, the governor articulated that the budget was strategically designed to accelerate economic growth, deepen infrastructure development across the state, and maintain a steadfast commitment to fiscal responsibility. This overarching vision guides the budget’s allocation and implementation. He further disclosed that the initial budget projected a total revenue of approximately N3.99 trillion. Of this amount, N3.12 trillion was expected to be generated from internally generated revenue, with an additional N874 billion anticipated from federal transfers. The deficit financing plan was outlined at approximately N243.3 billion, providing a clear picture of the financial strategy. The Lagos assembly’s passage of the N4.4 trillion 2026 budget is a testament to its commitment to a prosperous future for the state, focusing on key areas of development and economic stability.
