Lagos State Governor Babajide Sanwo-Olu, on Thursday, presented the 2025 budget estimates totalling N3.005 trillion to the state House of Assembly.
The proposed budget allocates N1.7tr (59 per cent) for capital expenditures, aimed at infrastructure and development projects, while N1.2tr (41 per cent) is designated for recurrent expenditures, covering administrative and operational costs.
Dubbed “Budget of Sustainability,” the financial plan represents a 32.5 per cent increase over the current year budget, totalling N2.3tn.
Sanwo-Olu said the proposed budget was structured to ensure stability, stewardship and social equity around five key pillars, including infrastructure sustainability, economic diversification, social inclusion and human capital development, environmental sustainability, governance and institutional reforms.
The governor noted that sustaining investment in infrastructure in key areas of priority would enable the state to build up momentum for more growth, stressing that his administration’s infrastructural drive would further get a boost in the coming fiscal year.
He said, “This 2025 budget is not just a fiscal document but a blueprint for continuity, resilience and shared prosperity for every Lagosian. As a key economic hub, Lagos stands at a crossroads: a nexus of challenges that test our resolve and opportunities that call for bold action. In crafting this budget, we have listened to our citizens’ voices, studied the global and local economic realities, and reaffirmed our commitment to ensuring that Lagos continues to thrive sustainably for generations to come.
“Next year, we are making significant progress in revitalising cultural, religious and recreational infrastructure across the state. These initiatives are aimed not only towards preserving the rich cultural heritage of Lagos, but also to unlock the tourism economy by creating spaces for recreation and artistic expression.
“I am also pleased to note that we have recently signed a MoU with the Ministry of Finance Incorporated (MOFI) to kickstart exploratory work on the development of the 68-km Green Line, which will connect Marina to the Lekki Free Trade Zone. In road construction and repairs, we have completed 36 road projects, including bridges, link bridges and pedestrian infrastructure, all of which are scheduled for commissioning in December.”
Sanwo-Olu disclosed that the budget would be financed through a combination of projected revenue inflow of N2.597tn, and a deficit financing of N408.9bn. The revenue sources, he said, include Internally Generated Revenue (IGR) projected to be N1.971tn, and federal transfers of N626.1bn.
The governor said the budget’s deficit would be financed through external and internal loans and the issuance of bonds, which, he said, would be within the state’s fiscal sustainability parameters.
Highlighting the sectoral allocation in the 2025 budget, Sanwo-Olu said the state government will be spending N233.176bn on the environment, N204.005bn on health, N208.376bn on education, N124.073bn on security, and safety and public order, while social protection will gulp N47.077bn.
On the current year’s budget, he stated that it had been implemented to the tune of N1.423tn, representing 84 per cent performance as of the end of the third quarter.
“Let me assure the House that this budget is not just a statement of intentions but a practical, actionable framework designed to impact lives. From students and entrepreneurs in Yaba to the farmers and fishermen in Epe and Badagry, from the business executives and market women on Lagos Island to the factory workers in Ikorodu, this budget is all about the people of Lagos alone.
“I also assure our residents of my commitment towards ensuring that this proposed budget can effectively recalibrate the State’s economy, stimulate economic growth and strengthen the positive trajectory. The development of any megacity like ours is the responsibility of both the public and private sectors. To this end, we will continue to explore public-private-partnership strategies in the provision of infrastructure, social services, and the conversion of challenges to opportunities within the context of scarce resources,” Sanwo-Olu said.
The Speaker of the House, Mudashiru Obasa, assured the governor of thorough legislative work on the budget, noting that the House would ensure the proposed spending reflected the yearnings of Lagosians.
He said, “I will appeal to Mr Governor and Lagosians to give us sufficient time to enable the House to do a thorough job on a financial document that has great influence on the lives of the people. The Assembly would not delay the passage of the budget, but we will be interested in placing a high premium on the need to ensure that the interests of Lagosians are protected socio-economically and politically.”