Governor Sanwo-Olu originally presented a budget proposal of N3.005 trillion to the House of Assembly on November 21, 2024. The Assembly later revised the proposal to N3.37 trillion, which was subsequently passed into law.
Lagos, Nigeria – Lagos State Governor, Babajide Sanwo-Olu, has signed the state’s N3.36 trillion budget for 2025 into law. The budget, themed “Budget of Sustainability,” was approved by the Lagos State House of Assembly earlier this week after adjustments to the initial proposal.
The signing ceremony, held at Lagos House in Ikeja on Thursday, was attended by key government officials, including Deputy Governor Dr. Obafemi Hamzat, Secretary to the State Government Bimbola Salu-Hundeyin, and members of the State Executive Council. Also present were members of the House of Assembly, led by Sa’ad Olumoh, Chairman of the Joint Committee on Appropriation and Finance.
Budget Overview
Governor Sanwo-Olu originally presented a budget proposal of N3.005 trillion to the House of Assembly on November 21, 2024. The Assembly later revised the proposal to N3.37 trillion, which was subsequently passed into law.
The governor described the budget as a framework for “continuity, resilience, and prosperity” for Lagos residents. It is structured around five key pillars, including Infrastructure Sustainability, Economic Diversification, and Institutional Reforms.
Revenue and Financing
The budget comprises a total revenue estimate of N2.597 trillion, which includes N1.971 trillion from Internally Generated Revenue (IGR) and N626.14 billion from federal transfers. The deficit of N408.9 billion will be financed through a combination of external and internal loans as well as bonds.
Expenditure Breakdown
The budget allocates N1.239 trillion for recurrent expenditure, which includes personnel costs, overheads, and recurrent debt charges, while N1.766 trillion is designated for capital expenditure. The recurrent expenditure represents 41% of the total budget, while capital expenditure accounts for 59%.
Detailed allocations for recurrent costs include:
- Total Overhead Costs: N722.59 billion
- Overhead: N432.58 billion
- Subventions: N139.73 billion
- Dedicated Funds: N150.28 billion
- Personnel Costs: N392 billion
- Recurrent Debt Charges: N125.23 billion
- For capital expenditure, N1.452 trillion is earmarked for projects, while N313.52 billion is allocated for repayments.
Sectoral Allocations
The budget prioritizes key sectors as follows:
- Economic Affairs: N908.7 billion
- Environment: N233.18 billion
- Health: N204 billion
- Education: N208.38 billion
- Security, Safety, and Public Order: N124.07 billion
- Social Protection: N47.08 billion
Legislative Approval
The Lagos State House of Assembly approved the budget earlier this week, following the presentation of a report by Sa’ad Olumoh. Speaker Mudashiru Obasa presided over the session, where lawmakers gave their approval through a voice vote.
The approved budget sets N1.295 trillion for recurrent expenditure and N2.071 trillion for capital expenditure for the fiscal year ending December 31, 2025. Governor Sanwo-Olu assured that the deficit financing remains within fiscal sustainability parameters, emphasizing the administration’s commitment to prudent financial management.
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