Lagos Pledges N2.337 Trillion Capital Projects as Sanwo-Olu Assents to N4.4 Trillion 2026 Budget

Lagos State has earmarked N2.337 trillion for capital projects in its N4.4 trillion 2026 budget, underscoring a strong emphasis on infrastructure and long-term development, following the assent of Governor Babajide Sanwo-Olu to the Appropriation Bill.

The governor signed the 2026 budget, tagged the Budget of Shared Prosperity, into law on Monday at the State House, Alausa, Ikeja, assuring residents that the spending plan would be responsibly implemented in their interest.

The total budget size approved by the Lagos State House of Assembly stands at N4,444,509,776,438, out of which N2,337,805,210,325 was allocated to capital expenditure, while N2,106,704,566,113 was set aside for recurrent spending for the year ending December 31, 2026. Capital expenditure accounts for more than 52 per cent of the total budget.

The House had earlier passed the bill following extensive deliberations during a plenary presided over by the Speaker, Mudashiru Obasa. Presenting the report of the House Committee on Economic Planning and Budget, its chairman, Sa’ad Olumoh, said the estimates prioritised infrastructure development, education, healthcare, economic growth and social development in line with the state government’s commitment to inclusive and sustainable growth.

Sanwo-Olu had on November 25 presented an initial budget proposal of N4.237 trillion for the 2026 fiscal year, representing a significant increase from the N3.366 trillion approved for 2025. The House subsequently reviewed the proposal and on January 8, 2026 passed the revised figure for the governor’s assent.

Speaking after signing the budget, the governor welcomed the upward review by lawmakers, describing it as an indication that the Assembly believed Lagos residents deserved more.

According to him, “On behalf of the people and the government of Lagos State, let me thank the House of Assembly. This is a budget that you have had your full input into, you have scrutinized, you have dissected, and you have taken your time to do the very constitutional provision, which is enshrined in our constitution. I want to thank you for the work you have done.

“You will notice that there is a slight increase from what we put forward, but that goes to show that the independence that you have, and the fact that you believe that Lagosians actually also deserve more, and the fact that you believe that we also can do more. So, we’re excited and we’re happy with the way that you have brought it forward here to us.

“For us in the executive, it is another opportunity for us to be able to work together. It is a budget of shared prosperity that has been properly christened, and sharing prosperity means that it’s an inclusive government, it’s a budget that must carry everybody along irrespective of what part of the state, what division in the state, what sector you are from you must feel governance, you must feel the essence of why we’re in government in one form or the other.

“If it’s on the road, that will be on the road. If it’s on the schools that we’re going to build, if it’s on the health facility we’re going to build, if it’s on the various industries and engagement we’re going to have, if it is on the various interventions that we will do to enhance and to improve the quality of lives. If it is for the security that we will provide to ensure that security of life and property is enshrined. These are ways in which the prosperity of every Lagosians will be felt in this budget in one form or the other.

“I want to assure you that the this budget will be implemented responsibly so that Lagosians will feel the benefits.”

Also speaking, Obasa, represented by the Majority Leader, Adams Nojeem, said, “I recall that Mr Speaker has directed all committees in the State House of Assembly to scrutinize this project properly so that it can reflect the reality of today’s Lagos.”

The Commissioner for Economic Planning and Budget, Opeyemi George, said the budget assent provided clarity on the intent and delivery framework for the 2026 fiscal plan.

“The budget assent provides us the opportunity to clearly articulate the intent, direction, and delivery framework for the year 2026 budget of Lagos State,” he said.

“This budget reflects deliberate planning and it strengthens the foundations for a more resilient, competitive, and people centered Lagos, one that is equipped to address present challenges while positioning for future growth.

“With a total proposed size of N4.2 trillion, which was reviewed upwards likely to N4.444 trillion by the Lagos State House of Assembly after legislative scrutiny and committee engagements with ministries, departments, and agencies, the year 2026 budget represents a bold yet disciplined fiscal response to prevailing economic realities.

“The administration is prioritizing economic affairs with deliberate emphasis on infrastructure renewal, transportation expansion, agricultural development, and other growth enhancing activities that stimulate business and economic development.”

Following the governor’s assent, full implementation of the 2026 budget is expected to commence in earnest.