The Lagos State House of Assembly has passed Governor Babajide Sanwo-Olu’s 2026 Appropriation Bill into law, approving an additional N162.89 billion to the executive proposal and raising the total budget size from N4.237 trillion to N4.4 trillion.
The bill was passed on Thursday following detailed legislative review. Governor Sanwo-Olu had presented the original N4.237 trillion budget to the Assembly in November 2025 under the theme “Budget of Shared Prosperity,” with priorities spanning infrastructure, education, healthcare, economic growth and social development.
More than 52 per cent of the approved N4.4 trillion budget is earmarked for capital expenditure, reflecting the state government’s strategy to drive long-term, inclusive growth through sustained investment in critical infrastructure.
The 2026 appropriation is the largest in Lagos State’s history and highlights the state’s steady fiscal expansion. Annual spending has increased from N1.1 trillion in 2021 to N3.367 trillion in 2025, before reaching the current N4.4 trillion benchmark.
The budget increase is supported by strong internally generated revenue and federal allocations, enabling the state to respond to rapid urbanisation and emerging challenges such as traffic congestion, flooding and rising public service demands.
The approved estimates align with the Sanwo-Olu administration’s T.H.E.M.E.S+ development agenda, with substantial allocations to transportation projects, health facilities, education infrastructure and youth empowerment programmes. Economic affairs and general public services also received significant funding, while security, environmental resilience and social inclusion remain priority areas.
The passage followed extensive consultations and committee deliberations between the executive and the legislature. Speaker of the House, Rt. Hon. Mudashiru Obasa, said the additional N162.89 billion reflected priority areas identified during the review process to ensure the budget remains responsive to the needs of Lagos residents.
