Governor Babajide Sanwo-Olu of Lagos State has signed the state’s 2025 Appropriation Bill into law, approving a record-breaking N3.36 trillion budget. Dubbed the “Budget of Sustainability,” the financial plan was initially presented to the Lagos State House of Assembly (LAHA) on November 21, 2024.
The signing ceremony, held at Lagos House in Ikeja, was attended by key government officials, including Deputy Governor Dr. Obafemi Hamzat, Secretary to the State Government Mrs. Abimbola Salu-Hundeyin, and other top functionaries.
Speaking at the event, Governor Sanwo-Olu expressed gratitude to the Lagos State House of Assembly for expediting the passage of the bill.
“On November 21, 2024, I presented the appropriation bill to the Lagos State House of Assembly as a blueprint for continuity, resilience, and sustainability,” Sanwo-Olu stated. “I deeply appreciate the Speaker, Mr. Mudashiru Obasa, and all assembly members for their collective support in making this a reality.”
The governor described the 2025 budget as the largest ever by any sub-national government in Nigeria. The budget allocates N1.295 trillion to recurrent expenditure and N2.07 trillion to capital projects.
Key Focus Areas
Sanwo-Olu emphasized that the focus of the 2025 budget would be on efficient implementation to achieve tangible outcomes. “Our priority is to achieve a 90-95% implementation rate, ensuring a Greater Lagos emerges through high-quality infrastructure capable of meeting the needs of our growing population,” he said.
The budget is built around five critical pillars:
- Infrastructure Sustainability – Maintenance, upgrades, and expansion of road networks and other critical infrastructure.
- Economic Diversification – Strengthening multiple sectors to secure a resilient economy.
- Social Inclusion and Human Capital Development – Investments in education, healthcare, and social services.
- Environmental Sustainability – Advancing climate action and environmental initiatives.
- Governance and Institutional Reforms – Enhancing the functionality and efficiency of public institutions.
The governor reiterated Lagos State’s commitment to financial prudence, highlighting the structured deficit financing of N398.662 billion to bridge funding gaps.
Budget Breakdown
Chairman of the LAHA Committee on Appropriation, Mr. Saheed Olumo, pledged the assembly’s support for the administration to ensure delivery of the dividends of democracy.
The 2025 budget earmarks 62% (N2.07 trillion) for capital expenditure and 38% (N1.295 trillion) for recurrent expenditure. The state plans to generate N2.34 trillion in internal revenue, supplemented by N626.13 billion from federal allocations.
According to the Commissioner for Economic Planning and Budget, Mr. Ope George, notable allocations include:
- Education: N223.3 billion, emphasizing workforce development.
- Health: N222.2 billion, aimed at world-class healthcare delivery.
- Environmental Sustainability: N287.2 billion, reflecting Lagos’ leadership in climate action.
- Security: N140.9 billion to ensure safety across the state.
- Social Protection: N37.3 billion to address the needs of vulnerable populations.
A Progressive Path
Governor Sanwo-Olu remarked that the 2025 budget builds on the foundation of previous budgets, which allocated N2.27 trillion in 2024 and N1.77 trillion in 2023.
“This budget is a testament to our vision for a sustainable, inclusive, and prosperous Lagos. We remain committed to delivering on the expectations of our citizens,” the governor concluded.
