Lagos State Governor, Mr. Babajide Sanwo-Olu, today presented the 2025 Appropriation Bill, totaling over N3 trillion, to the State House of Assembly for consideration and approval.
Governor Sanwo-Olu described the budget as the “Budget of Sustainability,” emphasizing that it serves as a strategic plan for continuity, resilience, and prosperity for the people of Lagos.
He explained that the budget is structured around five key pillars: Infrastructure, Sustainability, Economic Diversification, and Institutional Reforms.
In his address, Sanwo-Olu outlined the key components of the budget, noting that it aims to foster long-term growth and stability for the state. “The budget is designed to ensure that Lagos continues its development trajectory, making the city more sustainable and resilient,” he said.
This proposal follows the earlier approval of the N2.267 trillion 2024 Appropriation Bill, which Sanwo-Olu signed into law on January 18, 2024.
The presentation of the 2025 budget took place at a delayed ceremony held at the State House in Alausa, Ikeja, with the Deputy Governor, Dr. Femi Hamzat, and Speaker of the House of Assembly, Mudashiru Obasa, among other dignitaries, in attendance.
Budget Details
The total size of the 2025 Lagos State Budget is N3,005,935,198,401, which includes a total revenue of N2,597,034,000,000 and a deficit financing of N408,902,000,000. This total revenue is composed of Internally Generated Revenue (IGR) of N1,970,897,000,000 and Federal Transfers amounting to N626,137,000,000.
In terms of expenditure, Governor Sanwo-Olu proposed N1,239,818,000,000 for overhead costs, personnel expenses, and recurrent debt servicing. Of this amount, the total overhead cost is projected at N722.586 billion, with N432.580 billion allocated for overhead, N139.728 billion for subventions, and N150.278 billion for dedicated funds. Personnel costs are estimated at N392.000 billion, while recurrent debt charges are set at N125.232 billion.
Capital Expenditure Breakdown
For capital expenditure, the governor proposed a total of N1.766 trillion, which includes N1.452 trillion for capital projects and N313.515 billion for repayments.
Sectoral Allocations
The proposed 2025 budget includes significant allocations to various sectors, with the largest share going to Economic Affairs at N908.699 billion. Other key sectors include Environment (N233.176 billion), Health (N204.005 billion), Education (N208.376 billion), and Security, Safety, and Public Order (N124.073 billion). Social Protection is allocated N47.077 billion.
Governor Sanwo-Olu emphasized that the recurrent expenditure of N1.239 trillion represents 41 percent of the total budget, while capital expenditure of N1.766 trillion accounts for 59 percent. The deficit financing will be sourced through a combination of external and internal loans, as well as bonds, which Sanwo-Olu stated are in line with the state’s fiscal sustainability objectives.
