Korede Abdullah 
LAGOS, Nigeria – The Lagos State House of Assembly approves a ₦4.4 trillion budget for the 2026 fiscal year, positioning infrastructure investment and human development at the centre of Governor Babajide Sanwo-Olu’s final full budget cycle.
Lawmakers passed the appropriation bill on Thursday after adopting the report of the House Committee on Economic Planning and Budget, chaired by Sa’ad Olumoh, during plenary. The spending framework tagged the “Budget of Shared Prosperity,” becomes the third budget of the current administration and the last new-cycle budget of Sanwo-Olu’s second term.
The Assembly bases the 2026 estimates on key macroeconomic assumptions, including an exchange rate of ₦1,512 to the dollar, 14.7 per cent inflation, daily oil production of 2.06 million barrels and a benchmark oil price of $64 per barrel.
Reviewing 2025 performance, the committee reports a cumulative budget execution rate of 79 per cent as of November, with capital expenditure at 75 per cent and recurrent spending at 87 per cent, figures lawmakers describe as “encouraging.”
Under the approved plan, ₦2.052 trillion goes to recurrent expenditure, while ₦2.185 trillion is allocated to capital projects, underscoring a strong push for infrastructure delivery. Legislators add ₦171 billion during the review process, raising the total size of the budget.
The House pegs the projected deficit at about ₦243 billion, to be financed through approved borrowing options. Members stress the need for aggressive revenue reforms and prudent debt management as the bill passes its third reading and is adopted into law.
Governor Sanwo-Olu had earlier proposed a ₦4.237 trillion budget, projecting total revenue of about ₦3.99 trillion from internally generated revenue and federal allocations.
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