The Lagos State House of Assembly has passed the 2026 Appropriation Bill totaling approximately ₦4.4 trillion, officially titled the “Budget of Shared Prosperity.”
The budget was approved on Thursday following the presentation and adoption of the report by the House Committee on Economic Planning and Budget, chaired by Hon. Sa’ad Olumoh.
This represents the third full budget cycle of the current administration and the final new-cycle appropriation under Governor Babajide Sanwo-Olu’s second term.
The fiscal framework is aligned with the administration’s development priorities, structured around four key pillars: human-centric development, modern and adaptive infrastructure, a thriving 21st-century megacity economy, and effective, citizen-focused governance.
Key macroeconomic assumptions underpinning the budget include:
Exchange rate benchmark: ₦1,512 to the US dollar
Projected inflation rate: 14.7%
Oil production target: 2.06 million barrels per day
Benchmark oil price: $64 per barrel
The approved budget breaks down as follows:Recurrent expenditure: ₦2.052 trillion
Capital expenditure: ₦2.185 trillion
The capital component remains a major focus, reflecting the state’s continued emphasis on infrastructure and long-term development projects.
The budget also makes provisions for personnel costs, overheads, debt servicing, and debt repayment, with a projected deficit of about ₦243 billion to be financed through approved sources.
During the review process, lawmakers increased the original proposal presented by Governor Sanwo-Olu on November 25, 2025 (₦4.237 trillion) by an additional ₦171 billion to accommodate additional priorities.
The House noted strong performance of the 2025 budget so far, with cumulative performance reaching 79% as of November 2025 (capital expenditure at 75%, recurrent at 87%, and overall revenue at 79%).
Several lawmakers described the 2026 budget as realistic, growth-driven, and indicative of Lagos State’s solid economic standing.
Contributors emphasized the importance of revenue generation reforms, prudent debt management, and full collaboration among revenue agencies to achieve and potentially surpass the projected revenue targets.
Following extensive deliberations, the House adopted the committee’s report, conducted the third reading, and passed the Appropriation Bill into law.
The budget now awaits the assent of Governor Babajide Sanwo-Olu.
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