Lagos State Governor Babajide Sanwo-Olu has presented a ₦3.005 trillion budget proposal for the 2025 fiscal year to the State House of Assembly.
Dubbed the “Budget of Sustainability,” the plan focuses on driving infrastructural growth and addressing key sectors such as education, healthcare, security, and the environment.
During the presentation on Thursday, Sanwo-Olu explained that the budget includes a projected total revenue of ₦2.597 trillion, comprising ₦1.97 trillion in Internally Generated Revenue (IGR) and ₦626.1 billion in federal transfers.
The budget also outlines a deficit of ₦408.9 billion, to be financed through external and internal loans and bonds in line with fiscal sustainability parameters.
Budget Breakdown
The proposed budget allocates ₦1.239 trillion to recurrent expenditure, covering:
Total Overhead Costs: ₦722.6 billion
Overheads: ₦432.6 billion
Subventions: ₦139.7 billion
Dedicated Funds: ₦150.3 billion
Personnel Costs: ₦392 billion
Recurrent Debt Charges: ₦125.2 billion
Capital expenditure takes a larger share at ₦1.766 trillion, broken down into ₦1.452 trillion for new projects and ₦313.5 billion for repayments.
Sectoral Allocations
The budget focuses on key sectors with the following allocations:
Economic Affairs: ₦908.7 billion
Education: ₦208.4 billion
Healthcare: ₦204 billion
Environment: ₦233.2 billion
Security and Public Order: ₦124.1 billion
Social Protection: ₦47.1 billion
Balancing Recurrent and Capital Spending
Sanwo-Olu noted that 41% of the budget is designated for recurrent expenditure, while 59% will fund capital projects.
He stressed that the budget aligns with the state’s commitment to fiscal discipline and sustainable development.
The proposed budget now awaits deliberation and approval by the Lagos State House of Assembly.