The Lagos State House of Assembly has officially given its stamp of approval to a massive ₦4.4 trillion budget for the 2026 fiscal year. This landmark decision, made on Thursday, 9 January 2026, follows a detailed review and adoption of the report from the House Committee on Economic Planning and Budget.
Details of the 2026 Appropriation Bill
Committee Chairman, Hon. Sa’ad Olumoh, presented the comprehensive report during the day's plenary session. The budget, officially named the “Budget of Shared Prosperity,” is the third budget cycle of Governor Babajide Sanwo-Olu's current administration and marks the final new-cycle budget of his second term in office.
The financial plan is built on key macroeconomic assumptions, including an exchange rate of ₦1,512 to the US dollar, an inflation rate of 14.7 per cent, and an oil production benchmark of 2.06 million barrels per day at a price of $64 per barrel.
Out of the total ₦4.4 trillion, recurrent expenditure is pegged at ₦2.052 trillion, while a larger share of ₦2.185 trillion is allocated for capital expenditure. This significant capital outlay underscores the state's continued push for major infrastructure projects. The budget also accounts for personnel costs, overheads, and debt servicing, with a projected deficit of roughly ₦243 billion to be managed through approved financing avenues.
Performance Review and Lawmakers' Input
Before passing the new budget, the Assembly reviewed the performance of the 2025 budget. The committee reported a cumulative performance of 79 per cent as of November 2025. This broke down to 75 per cent for capital expenditure, 87 per cent for recurrent expenditure, and an overall revenue performance of 79 per cent.
During deliberations, lawmakers expressed strong support for the 2026 proposal. Hon. Aro Moshood revealed that an additional ₦171 billion was incorporated into the budget during the committee's review process. Hon. Femi Saheed described the budget as realistic and growth-oriented, stating it reflects Lagos's strong economic footing, provided all stakeholders fulfil their duties.
Hon. Gbolahan Yishawu, representing Eti-Osa Constituency II, emphasized the critical need for sustained revenue reforms and prudent management of loan repayments. He stressed that effective implementation is key to bolstering the state's fiscal health. Officials from revenue agencies also pledged to collaborate to meet and potentially exceed the projected revenue targets.
Path to Passage and Gubernatorial Vision
The journey for this budget began when Governor Babajide Sanwo-Olu presented an initial ₦4.237 trillion spending plan to the Assembly on 25 November 2025. The Governor framed the budget as a tool to accelerate economic growth, deepen infrastructure development, and maintain fiscal discipline.
His proposal anticipated a total revenue of about ₦3.99 trillion, with ₦3.12 trillion expected from Internally Generated Revenue (IGR) and ₦874 billion from federal transfers. The deficit financing plan was estimated at ₦243.3 billion.
Following the adoption of the committee's report, the House proceeded to the third reading and subsequently passed the 2026 Appropriation Bill into law. This budget is strategically aligned with the administration's development agenda, which rests on four pillars: human-centric development, modern infrastructure, a thriving 21st-century economy, and governance that surpasses public expectations.
