The Lagos State House of Assembly has formally approved a ₦4.44 trillion budget for the 2026 fiscal year, following the adoption of the report submitted by the House Committee on Economic Planning and Budget.
The budget, tagged the “Budget of Shared Prosperity,” was presented during plenary by the committee’s chairman, Mr Sa’ad Olumoh, who outlined the key assumptions, fiscal projections, and expenditure framework guiding the spending plan.
According to Olumoh, the 2026 budget was prepared using prevailing macroeconomic indicators, including an exchange rate benchmark of ₦1,512 to the US dollar. Other assumptions underpinning the framework include an inflation rate of 14.7 per cent, daily oil production of 2.06 million barrels, and a benchmark oil price of $64 per barrel.
The committee also reviewed the state’s 2025 budget performance, reporting a cumulative implementation rate of 79 per cent as of November 2025. Olumoh disclosed that capital expenditure recorded 75 per cent performance, while recurrent expenditure stood at 87 per cent, with overall revenue performance also placed at 79 per cent.
For the 2026 fiscal year, the approved budget size stands at approximately ₦4.4 trillion, comprising ₦2.052 trillion for recurrent expenditure and ₦2.185 trillion allocated to capital expenditure. Olumoh said the strong capital component reflects the state government’s commitment to infrastructure expansion and economic development across Lagos.
He added that the budget provisions cover personnel costs, overhead expenses, debt servicing, and loan repayments, with a projected ₦243 billion deficit expected to be financed through approved borrowing options.
Speaker of the House, Mudashiru Obasa, commended the committee’s work, describing the budget as realistic, balanced, and capable of promoting inclusive economic growth. Obasa said various revenue-generating agencies had assured lawmakers of their readiness to collaborate in achieving — and potentially exceeding — the state’s revenue targets.
During deliberations, Mr Aro Moshood (Ikorodu II) disclosed that lawmakers increased the proposed budget by ₦171 billion during the legislative review process. Mr Femi Saheed (Kosofe II) noted that the size of the budget underscored Lagos State’s continued economic strength, provided all stakeholders fulfilled their obligations.
Similarly, Mr Gbolahan Yishawu (Eti-Osa II) emphasised the importance of revenue reforms and prudent debt management to ensure long-term fiscal sustainability.
Following extensive debate, the Assembly adopted the committee’s report and passed the 2026 Appropriation Bill into law. The Speaker subsequently directed the Clerk of the House, Mr Olalekan Onafeko, to transmit the approved budget to Governor Babajide Sanwo-Olu for assent.
Governor Sanwo-Olu had earlier presented a ₦4.237 trillion budget proposal to the Assembly on November 25, stating that the spending plan was designed to accelerate economic growth, deepen infrastructure development, and maintain fiscal discipline.
The governor projected total revenue of ₦3.99 trillion, comprising ₦3.12 trillion from internally generated revenue and ₦874 billion from federal allocations, with a deficit financing requirement of about ₦243.3 billion for the 2026 fiscal year.
