By Wellington Jopelo
The Lagos State House of Assembly has passed a ₦4.4 trillion budget for the 2026 fiscal year, approving the spending plan after adopting the report of the House Committee on Economic Planning and Budget.
The budget, tagged the “Budget of Shared Prosperity,” was passed during plenary on Thursday and represents the third budget of the current administration and the final new-cycle budget of Governor Babajide Sanwo-Olu’s second term.
Chairman of the committee, Sa’ad Olumoh, presented the report, explaining that the 2026 Appropriation Bill was prepared based on realistic economic assumptions and aligned with the state government’s development agenda.
According to him, the budget focuses on four major areas: human development, modern infrastructure, economic growth for a megacity, and effective governance that meets the needs of residents.
Olumoh said the budget assumptions include an exchange rate of ₦1,512 to the dollar, inflation rate of 14.7 per cent, oil production of 2.06 million barrels per day, and a benchmark oil price of $64 per barrel.
The committee also reviewed the performance of the 2025 budget, reporting an overall implementation level of 79 per cent as of November 2025. Capital expenditure performance stood at 75 per cent, while recurrent expenditure reached 87 per cent.
For 2026, the approved budget size stands at about ₦4.4 trillion, made up of ₦2.052 trillion for recurrent expenditure and ₦2.185 trillion for capital projects. The strong capital allocation reflects the government’s focus on infrastructure development across the state.
The budget also provides for personnel costs, overheads, debt servicing, and loan repayments. A deficit of about ₦243 billion is expected and will be funded through approved deficit financing options.
During deliberations, lawmakers praised the budget, describing it as realistic and capable of driving economic growth. Aro Moshood revealed that an additional ₦171 billion was added during the budget review process.
Other lawmakers, including Femi Saheed and Gbolahan Yishawu, stressed the need for improved revenue generation, proper loan management, and effective implementation to strengthen the state’s finances.
The Assembly later adopted the committee’s report, took the third reading, and passed the 2026 Appropriation Bill into law. Governor Sanwo-Olu had earlier presented a ₦4.237 trillion budget proposal to the House on November 25, 2025, projecting total revenue of ₦3.99 trillion, with ₦3.12 trillion expected from internally generated revenue and ₦874 billion from federal allocations.