Lagos State Governor Babajide Sanwo-Olu has signed the state’s 2025 Appropriation Bill, valued at N3.36 trillion, into law.
The bill, tagged the “Budget of Sustainability,” was signed on Thursday,9th January at the Lagos House in Ikeja according to a report by NAN.
Governor Sanwo-Olu described the 2025 budget as the largest ever by any sub-national government in Nigeria.
“On Nov. 21, 2024, I stood before the Lagos State House of Assembly to present the appropriation bill – a blueprint for continuity, resilience, and sustainability. I thank the Lagos State House of Assembly for giving this bill an expedited action.
“It is with a deep sense of responsibility that we have signed this bill into law. The N3.36 trillion budget has N1.295 trillion as overhead cost and N2.07 trillion as capital expenditure,” he stated.
The governor highlighted the ambitious implementation target, aiming to achieve at least 90% execution
“As you have heard, it will be the largest sub-national budget, and we are convinced that we will do justice to it. At the minimum, we implement 90% to 95%.”
The governor also expressed gratitude to the Lagos State House of Assembly, led by Speaker Mudashiru Obasa, for their collaborative efforts in passing the bill
“On behalf of the state, I will like to express appreciation to the Speaker of the assembly, Mr. Mudashiru Obasa, and the entire members,” he said.
The ceremony was attended by Deputy Governor Dr. Obafemi Hamzat, Secretary to the State Government Mrs. Abimbola Salu-Hundeyin, and other senior government officials.
Key focus areas
The budget will prioritize five critical pillars;
- Infrastructure sustainability
- Economic diversification
- Social inclusion and human capital development
- Environmental sustainability
- Governance and institutional reforms
Sanwo-Olu emphasized the significance of infrastructure as a foundation for growth:
“Infrastructure sustainability is the backbone of any development agenda. In the coming three-year period, we will be prioritising the maintenance, upgrading, and expansion of existing road networks,” he said.
Funding structure
The state plans to generate N2.34 trillion internally and N626.13 billion from federal allocations. A deficit of N398.662 billion will be financed through structured funding to ensure financial prudence.
The Commissioner for Economic Planning and Budget, Mr. Ope George, provided further insights into the allocations
“Some of the allocations made in the budget are education (N223.3 billion) and health (N222.2 billion), underscoring our priority to nurture a skilled workforce and deliver world-class healthcare services.
Recognising the global urgency of environmental sustainability, we have allocated N287.2 billion to environmental initiatives, further demonstrating Lagos’s leadership as the first state to establish a dedicated Climate Change Department and lead climate action at the sub-national level,” he said.
Chairman of the Lagos State House of Assembly Committee on Appropriation Bill, Mr. Saheed Olumo, pledged the assembly’s support for the administration’s efforts to deliver dividends of democracy to residents.
Lagos State’s 2025 budget surpasses the N2.27 trillion budget for 2024 and the N1.77 trillion budget for 2023, reflecting a consistent trend of increased fiscal planning to meet the state’s developmental needs.
