The Lagos State House of Assembly has passed a ₦4.4 trillion budget for the 2026 fiscal year.
The approval followed the presentation and adoption of a report by the Chairman of the Joint Committee on Appropriation and Finance, Mr. Sa’ad Olumoh, during plenary presided over by the Speaker, Chief Mudashiru Obasa.
Tagged the “Budget of Shared Prosperity,” the approved spending plan represents the third budget cycle of the current administration and the final new-cycle budget of Governor Babajide Sanwo-Olu’s second term.
Presenting the committee’s report, Mr. Olumoh said the budget framework was guided by key macroeconomic assumptions, including an exchange rate benchmark of ₦1,512 to the dollar, an inflation rate of 14.7 per cent, daily oil production of 2.06 million barrels, and a benchmark oil price of $64 per barrel.
The committee also reviewed the implementation of the 2025 budget, reporting a cumulative 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 also put at 79 per cent.
For the 2026 fiscal year, the approved budget comprises ₦2.052 trillion for recurrent expenditure and ₦2.185 trillion for capital expenditure.
The capital component accounts for a substantial share of the budget, reflecting the state government’s continued emphasis on infrastructure development.
The budget makes provisions for personnel costs, overheads, debt servicing, and debt repayment.
A projected deficit of about ₦243 billion is expected to be financed through approved deficit-financing options.
During deliberations, lawmakers described the budget as realistic and growth-oriented.
The lawmaker representing Ikorodu Constituency II, Mr. Aro Moshood, disclosed that an additional ₦171 billion was introduced during the budget review process.
Similarly, the lawmaker representing Eti-Osa Constituency II, Mr. Gbolahan Yishawu, stressed the importance of revenue reforms and prudent loan repayment structures, noting that effective implementation would further strengthen the state’s fiscal position.
The Assembly also received assurances from relevant government officials that revenue-generating agencies would work collaboratively to meet, and possibly exceed, the projected revenue targets.
Following deliberations, the House adopted the committee’s report and passed the 2026 Appropriation Bill into law.
The Speaker subsequently directed the Clerk of the House, Mr. Olalekan Onafeko, to transmit the approved bill to Governor Babajide Sanwo-Olu for assent.
Governor Sanwo-Olu had earlier presented a ₦4.237 trillion budget proposal to the House on November 25, 2025.
Written By Olusegun Haastrup