Lagos, Jan. 8, 2026 (NAN) — The Lagos State House of Assembly has passed a ₦4.44 trillion budget for the 2026 fiscal year, adopting the report of the House Committee on Economic Planning and Budget on the proposed “Budget of Shared Prosperity.”
The committee’s chairman, Mr Sa’ad Olumoh, presented the report during plenary on Thursday, outlining the budget’s assumptions, projections, and expenditure framework.
Olumoh said the 2026 budget was guided by key macroeconomic indices, including an exchange rate benchmark of ₦1,512 to the U.S. dollar, an 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.
He told lawmakers that the committee also reviewed the 2025 budget performance, which recorded a cumulative implementation rate of 79 per cent as of November 2025.
According to him, capital expenditure performance stood at 75 per cent, recurrent expenditure at 87 per cent, while overall revenue performance was also placed at 79 per cent.
“For 2026, the approved budget size is approximately ₦4.44 trillion, comprising ₦2.052 trillion for recurrent expenditure and ₦2.185 trillion for capital expenditure,” Olumoh said.
He noted that the size of the capital component underscored the state government’s commitment to infrastructure development and economic expansion across Lagos.
The committee chairman explained that the budget covered personnel costs, overheads, debt servicing, and loan repayments, with a projected deficit of about ₦243 billion, to be financed through approved borrowing and financing options.
Reacting to the passage, Speaker of the House, Mr Mudashiru Obasa, commended the committee for what he described as a realistic and balanced budget, capable of driving inclusive growth in the state.
Obasa said revenue-generating agencies had assured the Assembly of cooperation to meet, and possibly exceed, projected revenue targets.
Contributing to the debate, Mr Aro Moshood (Ikorodu II) disclosed that an additional ₦171 billion was added to the budget during the legislative review process.
Mr Femi Saheed (Kosofe II) said the size of the budget reflected Lagos State’s economic strength, provided all stakeholders discharged their responsibilities diligently.
Similarly, Mr Gbolahan Yishawu (Eti-Osa II) stressed the need for revenue reforms and prudent loan repaymentsto ensure long-term fiscal sustainability.
Following deliberations, the House adopted the committee’s report and passed the 2026 Appropriation Bill into law.
The Speaker subsequently directed the Clerk of the House, Mr Olalekan Onafeko, to transmit the budget to Gov. Babajide Sanwo-Olu for assent.
NAN reports that Sanwo-Olu had earlier presented a ₦4.237 trillion budget proposal to the Assembly on Nov. 25, stating that it was designed to accelerate economic growth, deepen infrastructure development, and sustain fiscal responsibility.
The governor projected total revenue of ₦3.99 trillion, comprising ₦3.12 trillion from internally generated revenue (IGR) and ₦874 billion from federal transfers, with a deficit financing plan of approximately ₦243.3 billion for the 2026 fiscal year.
Samuel Gbenga Salau ✔
Dr. Gbenga Salau Samuel Editorial Board Chairman, Naija247news Media Group LLC Dr. Gbenga Salau Samuel is an economist and journalist trained at the University of Ibadan, renowned for blending rigorous economic analysis with clear, people-centered journalism. As Editorial Board Chairman of Naija247news Media Group LLC, he leads the newsroom’s policy and standards framework, champions data-driven reporting, and steers impactful coverage across macroeconomics, markets, public finance, governance, and development. With a career rooted in evidence-based storytelling, Dr. Samuel is committed to elevating editorial integrity, nurturing young newsroom talent, and positioning Naija247news as a trusted, agenda-shaping voice in Nigeria’s media and policy space.
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