N4.2trn Budget: Gov. Sanwo-Olu Charts New Course for Lagos in 2026

Gov. Babajide Sanwo-Olu on Tuesday presented the N4.237 trillion Appropriation Bill for the 2026 fiscal year to the Lagos State House of Assembly.

Sanwo-Olu described the ambitious, future-driven financial plan, dubbed the “Budget of Shared Prosperity,” as a final effort to solidify his administration’s legacy.

The governor asserted that the proposal reflects a collective optimism for Lagos to continue expanding opportunities and reinforcing its status as Africa’s foremost megacity.

The projected total revenue stands at N3.994 trillion, broken down into N3.12 trillion in Internally Generated Revenue and N874 billion in Federal Transfers.

The funding structure, he noted, leaves a deficit financing requirement of N243,332,457,167.

For the 2026 fiscal year, capital expenditure is set at N2,185,085,419,495, while recurrent expenditure stands at N2,052,021,589,812.

He explained that the recurrent component covers overheads, personnel costs, and debt obligations.

A breakdown of recurrent spending shows total overhead costs of N1,084,245,843,091, including general overheads, subventions and dedicated expenditures, while personnel costs amount to N440,494,339,384.

Recurrent debt charges are projected at ₦143,876,701,943, with debt repayments estimated at N383,404,705,394.

Sanwo-Olu also outlined the sectoral distribution of the 2026 budget. General Public Services will receive N847,472,071,966; Public Order and Safety, N147,040,088,897; and Economic Affairs, N1,372,307,808,626. The Environment Ministry is allocated N235,957,235,138, while Housing receives N123,760,310,429.

The health sector is earmarked N338,449,258,945; Education gets N249,132,921,287; Social Protection, N70,024,171,038; and the Recreation and Culture sector will take N54,682,339,586.

The governor said the year 2026 carries special weight as the last full calendar year of his administration, describing it as a period crucial for consolidating achievements and ensuring a “strong, successful finish.”

He reaffirmed his commitment to completing all ongoing and newly initiated projects, adding that his administration will continue to prioritise citizen engagement to ensure government decisions reflect the needs of Lagosians.

He said Lagos is entering a new phase of “accelerated impact,” driven by sustained investment in infrastructure, human capital, social welfare and governance systems that are “intentional, inclusive and future-oriented.”

Sanwo-Olu reiterated his administration’s core mission: “To keep Lagos secure, to keep Lagos working, to keep Lagos growing, and to make sure the prosperity we build is shared by everyone who calls this centre of excellence home.”

He commended the State House of Assembly for its consistent partnership, describing the lawmakers as steadfast allies in the state’s development journey.

He also praised the state civil service for its hard work in translating government vision into measurable progress.