Lagos State has officially signed into law its largest budget in history, totaling N3.36 trillion for the year 2025. Governor Babajide Sanwo-Olu, on Thursday, approved the fiscal document, marking a significant milestone in the state’s commitment to sustainable growth, economic diversification, and infrastructural development.
The Lagos State House of Assembly had earlier raised the initial proposal of N3.005 trillion by over N300 billion, bringing the final figure to N3,366,815,224,144. The House approved the budget on Monday, following a presentation and deliberations led by the Chairman of the Joint Committee on Appropriation and Finance, Sa’ad Olumoh. Speaker Mudashiru Obasa presided over the session.
Key Features of the 2025 Budget
Governor Sanwo-Olu first presented the budget proposal on November 21, 2024, before the state legislature, highlighting a fiscal strategy that includes a deficit financing of N408.9 billion. This deficit is set to be covered through a combination of external and internal loans and bonds. The Governor stressed that the fiscal plan is centered around five main pillars: Infrastructure Sustainability, Economic Diversification, and Institutional Reforms.
At the signing ceremony held at the Lagos House, Ikeja, Sanwo-Olu was joined by Deputy Governor Dr. Obafemi Hazmat, Secretary to the State Government Bimbola Salu-Hudeyin, and key members of the Lagos State House of Assembly.
Sanwo-Olu described the budget as a “blueprint for continuity, resilience, and prosperity for residents,” and called for ongoing collaboration between the Executive and the Legislature to ensure successful implementation.
Budget Breakdown: Infrastructure and Social Investments
The 2025 Lagos State budget features significant allocations toward infrastructure, economic development, and social welfare. The state has earmarked N1.77 trillion for capital expenditure, with N1.45 trillion specifically set aside for infrastructure projects. This reflects the state’s ongoing push to enhance its urban infrastructure and create jobs.
Lagos continues to prioritize infrastructure, with 62% of the budget allocated for capital expenditure and 38% for recurrent spending. The state is also committed to investing in education, healthcare, and environmental sustainability. A total of N223.3 billion has been set aside for education, and N222.2 billion for healthcare services to improve the well-being of Lagosians.
Environmental initiatives have been allocated N287.2 billion, reinforcing Lagos’ position as a leader in climate action, with the state already pioneering the establishment of a Climate Change Department to drive sustainability efforts.
Economic Growth and Revenue Framework
The budget’s revenue framework projects N2.34 trillion from internally generated revenue (IGR) and N626.14 billion from federal transfers. This robust revenue base reflects Lagos’ ability to generate significant funds through innovation and efficient tax systems, allowing for substantial investments in economic affairs, job creation, and enterprise growth.
The Governor emphasized the strategic importance of this fiscal document, stating that it is crucial for addressing the state’s long-term goals of economic diversification and stability. He noted, “This historic budget positions Lagos at the forefront of development in Nigeria and beyond.”
Deficit Financing and Fiscal Prudence
A significant portion of the budget’s deficit, N398.66 billion, is being financed through carefully structured loans and bonds. Sanwo-Olu assured residents that this financing model is designed with fiscal responsibility and sustainability in mind, ensuring that Lagos maintains a strong financial standing while undertaking critical development projects.
Ensuring Effective Budget Implementation
The Governor further emphasized the need for active participation from both the executive and legislative arms of government in ensuring the effective implementation of the budget. “The infrastructure delivered belongs to all of us, and we must protect it as owners,” Sanwo-Olu urged. He also called for feedback from residents and pledged that the government would be responsive to the needs of the people.
The Commissioner for Economic Planning and Budget, Ope George, praised the budget, stating, “It reflects our unwavering commitment to economic growth, infrastructure, and the welfare of all Lagosians.”
A Historic Step for Lagos
Lagos’ 2025 budget represents an ambitious step forward for the state’s long-term growth and prosperity. By prioritizing infrastructure, economic diversification, and environmental sustainability, the budget is set to drive significant change in the lives of Lagos residents while positioning the state as a leader in sub-national governance.
