…Targets N3.119Trn Internally Generated Revenue
Lagos State Governor, Babajide Sanwo-Olu, on Tuesday presented a N4.237 trillion budgetary proposal for the 2026 fiscal year to the Lagos State House of Assembly for approval.
The proposed 2026 budget represented a huge increase of more than N1 trillion over the N3.005 trillion approved budget for the 2025 fiscal year.
Sanwo-Olu, who named the Appropriation Bill as “Budget of Shared Prosperity”, said the Bill reflected his administration’s commitment to inclusive growth, infrastructure expansion, and social investment.
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He told the lawmakers: “This budget is proposed at a total size of N4.237 trillion. This budget comprises a total revenue of N3.993 trillion, which has only a deficit financing of N243.332 billion. We also have a total revenue comprising totally internally generated revenue of N3.119 trillion and total federal transfers of N874 billion.”
The governor proposed a capital expenditure of N2.185 trillion and recurrent expenditure of N2.055 trillion, covering overheads, personnel, and debt servicing for the 2026 fiscal year
Giving a breaking down of the proposed recurrent expenditure, Sanwo-Olu explained that Overhead costs would gulp N698.891 billion; Subventions: N201.216 billion; Dedicated expenditure: N184.139 billion; while Total overhead allocation stood at N1.084 trillion
A further analysis of the recurrent expenditure provisions indicated that personnel costs were pegged at N440.449 billion, while debt servicing included N143.876 billion in recurring debt charges and N383.404 billion for debt repayment.
The governor proposed on sectoral allocations to key sectors that General Public Service would gulp N847.472 billion while Public Order and Safety and Economic Affairs had N147.040 billion and N1.372 trillion as allocations respectively in the 2026 Appropriation Bill laid before the lawmakers for approval.
Others comprised Environment: N235.957 billion, Housing: N123.760 billion, Health: N338.449 billion, Education: N249.132 billion, Recreation and Culture: N54.682 billion, and Social Protection: N70.024 billion
The sectoral allocations reflected the Governor Sanwo-Olu-led administration’s priorities in infrastructure, human capital development, and social welfare.
As required by law, the State House of Assembly’s lawmakers would now deliberate on the proposed provisions in the Bill, if considered necessary hold public hearing on some critical issues in the draft fiscal legislation before passing it for the governor’s signature before disbursements (implementation) will commence by the state government.
