The Lagos State House of Assembly has passed a ₦4.44 trillion budget for the 2026 fiscal year, approving the report of the House Committee on Economic Planning and Budget.
Presenting the report during plenary on Thursday, the committee chairman, Mr Sa’ad Olumoh, said the appropriation—tagged the Budget of Shared Prosperity—was framed around key macroeconomic assumptions. These include an exchange rate benchmark of ₦1,512 to the dollar, an inflation rate of 14.7 per cent, oil production of 2.06 million barrels per day, and a benchmark oil price of $64 per barrel.
Olumoh disclosed that the committee also reviewed the 2025 budget performance, noting a cumulative implementation rate of 79 per cent as of November 2025. According to him, capital expenditure performance stood at 75 per cent, recurrent expenditure at 87 per cent, while overall revenue performance was also 79 per cent.
“For 2026, the approved budget size is about ₦4.4 trillion, with recurrent expenditure of ₦2.052 trillion and capital expenditure of ₦2.185 trillion,” Olumoh said. He added that the capital allocation reflected the state government’s strong commitment to infrastructure development.
He explained that the budget provides for personnel costs, overheads, debt servicing and repayments, with a projected deficit of about ₦243 billion to be financed through approved funding options.
Speaker of the House, Mr Mudashiru Obasa, commended the committee, describing the budget as realistic, balanced and capable of driving inclusive economic growth. He said revenue-generating agencies had assured lawmakers of their commitment to meeting, and possibly exceeding, the projected revenue targets.
During deliberations, Mr Aro Moshood (Ikorodu II) revealed that ₦171 billion was added to the budget during the legislative review process. Mr Femi Saheed (Kosofe II) said the size of the budget underscored Lagos State’s economic strength, provided all stakeholders fulfilled their obligations. Similarly, Mr Gbolahan Yishawu (Eti-Osa II) emphasised the need for revenue reforms and prudent loan repayments to enhance fiscal sustainability.
Following the debate, the House adopted the committee’s report and passed the 2026 Appropriation Bill into law.
The Speaker directed the Clerk of the House, Mr Olalekan Onafeko, to transmit the 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, 2025. He said the budget was designed to accelerate economic growth, deepen infrastructure development and sustain fiscal responsibility.
The governor projected total revenue of ₦3.99 trillion, comprising ₦3.12 trillion from internally generated revenue and ₦874 billion from federal transfers, with a deficit financing plan of about ₦243.3 billion for the 2026 fiscal year.
