Governor Babajide Sanwo-Olu, on Tuesday, presented a N4.24 trillion budget proposal for 2026 to the Lagos State House of Assembly, describing it as a transformative plan for inclusive growth.
Presenting what he called the last full-year budget of his administration, Sanwo-Olu said the budget proposal would build on the foundations laid by the 2025 Budget of Sustainability and advance the state’s long-term development trajectory.
He tagged the 2026 budget – ‘The Budget of Shared Prosperity’.
“This budget reflects our unwavering commitment to eradicate poverty, expanding opportunities and building a Lagos that works for everyone.
“Our vision remains clear: shared prosperity should not be an aspiration but a lived reality,” the governor said.
Sanwo-Olu said that the spending plan would be anchored on four pillars: a human-centred approach, modern infrastructure, thriving economy, and effective governance aligned with his administration’s THEMES Plus Agenda.
According to him, Lagos has consolidated its status as Africa’s second-largest city economy after Cairo.
He attributed the feat to consistency, innovation and resilience of the state residents.
He highlighted other milestones by Lagos as hosting Africa’s first E1 Electric Powerboat Grand Prix, securing hosting rights for the 2026 Creative Africa Nexus and the 2027 Intra-African Trade Fair.
Sanwo-Olu also highlighted the state’s progress in 2025 across education, healthcare, social protection, transport, housing, environmental management agriculture and technology.
He said that his administration completed more than 250 educational infrastructure projects, expanded healthcare facilities and strengthened the state’s social register.
He added that the state government constructed major roads and bridges, upgraded water transport means, and advanced landmark housing schemes.
“We are shifting from building infrastructure to integrating it.
” We need to emphasise plans to interlink roads, rail, waterways, power systems and digital networks into one functional mobility ecosystem,” Sanwo-Olu said.
On teconomy, the governor said that Lagos secured over one trillion Naira in new investment commitments in 2025 and signed a major Micro, Small and Medium Enterprises (MSME) financing agreement with the Bank of Industry.
He also said that the state launched transformative initiatives such as the N500 billion Lagos Uptake Guarantee Fund aimed at boosting food systems and reducing household pressure.
He reaffirmed the state’s commitment to fiscal discipline, transparency and strengthening of security architecture.
“Good governance is the backbone of development, and Lagosians must remain at the centre of every decision we make,” he said.
Sanwo-Olu commended the House of Assembly for cooperation, saying that its partnership had supported steady progress of Lagos from stability to reform and expansion and then shared prosperity.
“This budget strengthens our mission to build a Lagos that works for everyone,” he said.
He highlighted integrated mobility, climate resilience, social protection, digital advancement, and improved revenue systems as facilitating the development of the state.
The State Government recently announced 80 per cent performance in the implementation of its 2025 Budget of N3.37 trillion.
Speaker of the Assembly, Mr Mudashiru Obasa, applauded the governor for good governance.
He said that the assembly would give the budget proposal accelerated consideration.
The 2026 budget proposal has a revenue projection of N3.99 trillion and deficit financing of N243.33 billion.
Projected internally-generated revenue stands at N3.12 trillion while federal allocation is projected at N874 billion.
The state’s proposed capital expenditure stands at N2.19 trillion and recurrent expenditure, N2.052 trillion, comprising overhead cost, personnel cost and recurrent debt servicing.
General public services got N847.47 billion, public order and safety – N147.040 billion, economic affairs – N1.372 trillion and environment N235.957 billion, while housing got N123.760 billion and health – N338.449 billion.
Recreation got N54.682 billion, education – N249.132 billion and social protection – N70.024 billion.
Sanwo-Olu had, in 2025, presented a budget of ₦3.37 trillion with a revenue estimate of ₦2.97 trillion.
