Lagos State lawmakers have approved a ₦4.44 trillion budget for 2026, calling it the “Budget of Shared Prosperity.”
They described it as a blueprint for inclusive growth, balancing daily operations with major infrastructure projects.
Lagos Approves ₦4.44 Trillion Budget
Moreover, the budget relies on key economic assumptions: an exchange rate of ₦1,512 per dollar, 14.7% inflation, and daily oil production of 2.06 million barrels.
It also assumes a benchmark oil price of $64 per barrel to guide revenue projections.
Focus On Capital And Recurrent Spending
Of the total budget, the government allocates ₦2.185 trillion to capital projects, nearly matching ₦2.052 trillion for recurrent spending.
Recurrent spending will cover salaries, overheads, debt servicing, and other essential government expenses.
Furthermore, the state plans to finance a projected deficit of ₦243 billion through approved borrowing and other financing options.
Chairman of the Budget Committee, Sa’ad Olumoh, reported that Lagos achieved 79% overall budget performance in 2025 by November.
Specifically, capital expenditure reached 75%, recurrent spending 87%, and overall revenue collection also hit 79%.
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During legislative review, lawmakers added ₦171 billion to the original proposal to address emerging priorities.
They stressed that revenue reforms and disciplined spending remain essential to sustain fiscal stability.
Driving Growth And Fiscal Confidence
Additionally, Speaker Mudashiru Obasa described the budget as “realistic and balanced,” stating it can drive inclusive economic growth.
He added that revenue agencies promised stronger collaboration to meet, or even surpass, projected targets.
Governor Babajide Sanwo-Olu initially presented ₦4.237 trillion, projecting total revenue of ₦3.99 trillion, including federal transfers.
Overall, Lagos’ budget demonstrates confidence, with capital projects nearly matching recurrent spending despite inflation and fiscal pressures.
In conclusion, the plan highlights infrastructure-led growth, efficient revenue management, and disciplined spending as keys to fiscal health.
