By Emmanuel Ukudolo l Monday, January 19.26
LAGOS — Governor Babajide Sanwo-Olu on Monday signed into law a record N4.444 trillion ($2.7bn) “Budget of Shared Prosperity” for 2026, marking an ambitious fiscal expansion aimed at insulating Nigeria’s economic hub from mounting urban pressures and infrastructure deficits.
The final appropriation, signed at the state house in Alausa, represents a significant upward revision from the N4.2 trillion initially proposed by the executive.
The adjustment follows a rigorous week-long scrutiny by the State House of Assembly, which concluded on January 8.
The 2026 fiscal framework prioritises long-term growth over administrative costs, with a clear tilt toward infrastructure renewal. Commissioner for Economic Planning and Budget, Ope George, detailed a balanced but investment-led structure:
Capital Expenditure N2.337 Trillion 53%
Recurrent Expenditure N2.107 Trillion
Mr. George described the budget as a “bold, disciplined fiscal response to prevailing economic realities,” noting that the state’s ability to execute this plan is anchored on the “significant performance” of the 2025 budget.
Strategic Priorities
Governor Sanwo-Olu framed the budget as a mechanism to maintain Lagos’s status as a competitive megacity.
The administration is targeting several “growth-enhancing” sectors to stimulate productivity:
Infrastructure & Transport: Continued expansion of the state’s transport network to alleviate chronic congestion.
Social Services: Construction of new schools and healthcare facilities.
Security: Increased funding to ensure the state remains a safe haven for international and domestic business.
Waste Management: A doubling of capacity for the Lagos State Waste Management Authority (LAWMA) following what the Governor described as “completely unacceptable” levels of indiscriminate waste dumping.
Urban Challenges and Resilience
The signing comes at a delicate time for the Lagos administration. Mr. Sanwo-Olu acknowledged recent “difficult governance challenges,” including a devastating fire at the Balogun Market and the controversial demolition of shanties along the Ebute Metta coastline.
These events, he argued, underscore the urgent need for the improved service delivery the N4.444 trillion budget is intended to provide.
“This is an inclusive budget designed to carry every resident along, irrespective of where they live or the sector in which they operate,” the Governor said.
While the budget is the largest in the state’s history, the administration faces the perennial challenge of revenue collection and inflationary pressure on procurement. However, the Majority Leader of the House of Assembly, Noheem Adams, expressed confidence in the executive’s capacity to implement the document “to the letter.”
