Lagos State Governor Babajide Sanwo-Olu has presented a landmark ₦4.237 trillion spending plan for the 2026 fiscal year.
The proposal, titled “Budget of Shared Prosperity,” represents the biggest fiscal outline ever introduced by the state and signals a renewed push to complete ongoing capital projects while expanding investment in health, education, security, and social welfare.
According to the governor, the government expects ₦3.993 trillion in total revenue during the year, anchored by a strong internal revenue drive projected at ₦3.119 trillion.
Federal transfers, including FAAC inflows, are estimated at ₦874 billion, leaving a financing gap of ₦243.332 billion to be covered through approved borrowing channels and other funding windows.
A breakdown of the financial plan shows a near-even split between capital and recurrent components.
Capital expenditure stands at ₦2.185 trillion, indicating Lagos’ intention to accelerate investments in roads, bridges, housing, transport systems, water projects, urban renewal, waste infrastructure and flood-management projects.
Recurrent spending is projected at ₦2.052 trillion, covering personnel-related costs, overheads, debt obligations, and essential operational needs.
Sectoral allocations highlight Lagos’ focus on strengthening the state’s long-term economic base.
Economic Affairs, which houses a significant portion of infrastructure and development programmes, receives ₦1.372 trillion, the largest share of the budget.
General Public Services follows with ₦847.472 billion, driven by governance and administrative reforms aimed at improving efficiency.
Social-sector funding also features prominently as the health sector was allocated ₦338.449 billion to upgrade medical facilities, expand healthcare access, and support ongoing health insurance initiatives.
The education sector receives ₦249.132 billion to enhance learning infrastructure, teacher development, and digital education programmes.
Allocations for environment and flood-control projects amount to ₦235.957 billion, while ₦123.760 billion is set aside for housing development.
The budget also reflects the administration’s commitment to strengthening public safety, with ₦147.040 billion earmarked for security agencies and emergency response systems.
Social protection programmes, designed to support vulnerable households, attract ₦70.024 billion, while cultural and recreational initiatives receive ₦54.682 billion to promote tourism and community engagement.
Governor Sanwo-Olu noted that the 2026 fiscal plan is structured around four pillars: Human-Centred Development, Modern Infrastructure, Thriving Economy, and Effective Governance.
He stressed that the goal is to consolidate the gains recorded over the current administration’s tenure and deliver stronger outcomes across all sectors.
The governor added that the size and direction of the budget reflect Lagos’ long-term growth ambition and the need to maintain the momentum of major projects currently underway across transportation, digital systems, housing, flood resilience, and urban development.
He emphasised that fiscal transparency, prudent spending, and measurable performance indicators will guide the execution of the budget throughout the year.