Lagos passes ₦4.44t as Y2026 budget

…okays Oshodi as Lagos State Sports Trust Funds Boss

The Lagos State House of Assembly has firm up and passed  the fiscal document for year 2026 with a total budget size of ₦4,444 trillion into law at its Thursday plenary.

The Y2026 appropriation Bill laid before the state legislature on by the state Governor  Mr. Babajide Sanwo-Olu, on Tuesday, 25th November, 2025 and same was committed to the House committee on Economic Planning and Budget to holistically scrutinize Ministries, Departments and Agencies MDAs proposals.

The Chairman, Committee on Economic Planning and Budget, Hon. Olumoh Sa’ad Lukmon who spearheads the task, while giving the committee’s report in the House committee of Supply stated that “The total Budget Size for Y2026 is ₦4,444 trillion and it comprises the sums of ₦2,106 trillion as Recurrent and ₦2,337trillion as Capital Expenditure for the Year ending 31st December, 2026 tagged tagged the “Budget of Shared Prosperity.”

According to the report, the 2026 budget represents the third budget cycle of the current administration and the final new-cycle budget of Governor Babajide Sanwo-Olu’s second term.

It aligns with the administration’s development agenda, anchored on four strategic pillars: human-centric development, modern and adaptive infrastructure, a thriving 21st-century megacity economy, and effective governance that exceeds citizens’ expectations.

Hon. Olumoh noted that the budget framework was informed by macroeconomic indices, including 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.

The committee also reviewed the 2025 budget performance, reporting a cumulative budget performance of 79 per cent as of November 2025. Capital expenditure performance stood at 75 per cent, recurrent expenditure at 87 per cent, while overall revenue performance was put at 79 per cent.

The capital component represents a significant portion of the budget, underscoring the state government’s commitment to infrastructure development.

The lawmakers who took turns to laud the fiscal document, describes it as realistic and growth-oriented.

Hon. Aro Moshood disclosed that an additional ₦171 billion was added to the budget during the review process.

Hon. Femi Saheed representing Kosofe Constituency 2 said the size and structure of the budget showed that Lagos State remained on a strong economic footing, provided all stakeholders played their roles, as the budget caters for the macroeconomic indices cardinal for any workable budgetary provision.

He clarified further that missing key indicators in the appropriation proposal brought by the executive were adequately infused, a factor responsible for the slight adjustment of figures proposed initially which stood at ₦4,237 trillion to what was eventually phased-  ₦4,444 trillion.

“Lagos is on a sure pedestal of increasing revenues.”

In the view of Hon. Gbolahan Yishawu, representing Eti-Osa Constituency II, revenue reforms and prudent loan repayment structures, distinguished Y2026 budget as this will strengthen the state’s fiscal position.

Consequently, the House adopted the committee’s report and passed the 2026 Appropriation Bill into law.

Governor Babajide Sanwo-Olu had earlier disclosed that the budget projected total revenue of about ₦3.99 trillion, with ₦3.12 trillion expected from internally generated revenue and ₦874 billion from federal transfers, while the deficit financing plan stood at approximately ₦243.3 billion.

Speaker Obasa thereafter directed the Clerk of the House, Barr. Olalekan Onafeko to forward a clean copy of the budget to Mr. Babajide Sanwo-Olu for his assent.

Earlier the House confirms the appointment of Mr. Enitan Oshodi as the Chairman Board of Trustees of the Lagos State Sports Trust Fund.

While the Lagos State Harmonized Taxes and Levies (Approved list for Collection) Bill 2025 and Registration of LIS PENDEND Bill 2024 were read for the first time, after which the House adjourns sitting indefinitely.