Lagos State Governor Babajide Sanwo-Olu has presented a landmark N4.237 trillion budget for 2026, the largest in the state’s history, outlining an ambitious plan to accelerate development across key sectors and consolidate the gains of his administration’s T.H.E.M.E.S+ agenda.
Presenting the “Budget of Shared Prosperity” to the Lagos State House of Assembly on Tuesday, the governor said the proposal is anchored on four strategic pillars: a human-centred approach, modern infrastructure, a thriving economy, and effective governance. These, he noted, are designed to expand opportunities, deepen social welfare systems, boost job creation, advance urban renewal, and scale up infrastructure integration.
Sanwo-Olu said the state aims to fund the bulk of the budget through an expected Internally Generated Revenue (IGR) of N3.12 trillion, supplemented by federal allocations, bonds, and loans within Lagos’ fiscal limits. The jump to a N4 trillion budget threshold, he said, reflects rising development needs and the state’s growing economic capacity.
The spending plan allocates N2.185 trillion (52%) to capital expenditure and N2.052 trillion (48%) to recurrent expenses. Economic Affairs, covering major sectors such as Works and Infrastructure, Transportation, Tourism, Agriculture, Energy, and Commerce, will receive N1.372 trillion — the highest allocation.
Sectoral allocations include N339 billion for health, N249 billion for education, N236 billion for environmental management, N147 billion for security, N124 billion for housing, N848 billion for the General Public Service, N70 billion for social protection, and N55 billion for recreation.
Sanwo-Olu said Lagos will intensify efforts in integrating existing infrastructure rather than merely expanding it, strengthen MSMEs, support innovation-driven enterprises, empower women and youth, and execute major urban renewal and waste management interventions to improve flood control and environmental resilience.
“Lagos stands today as Africa’s second-largest city economy after Cairo. This status is the product of decades of consistency, productivity, and the unyielding Lagos spirit,” the governor said. “Our mission in 2026 is to eradicate poverty, expand opportunity, and build a Lagos that works for everyone.”
He noted that the state had achieved 81 percent implementation of the 2025 budget as at September, with capital spending reaching N1.238 trillion. He also revealed that Lagos secured more than N1 trillion in fresh investment commitments in 2025, underscoring investor confidence.
Sanwo-Olu credited President Bola Ahmed Tinubu’s federal reforms for boosting Lagos’ revenue outlook, describing them as transformative despite national economic challenges.
Speaker of the House of Assembly, Mudashiru Obasa, described the proposal as comprehensive and aligned with the state’s development aspirations. He pledged the legislature’s thorough scrutiny to ensure the budget meets the needs of Lagos residents.
“We will continue to enact laws that enhance the quality of life of our people and support institutional development,” Obasa said.
The press statement was signed by Gboyega Akosile, Special Adviser on Media and Publicity, on November 25, 2025.