Sanwo-Olu Presents Record N3trn Budget for 2025 Fiscal Year
As state prioritizes economic affairs, infrastructure in record-breaking fiscal plan
Lagos State Governor Babajide Sanwo-Olu has presented an ambitious 3 trillion naira budget proposal to the State House of Assembly for the 2025 fiscal year, marking a 32.5 percent increase from the current year’s 2.3 trillion naira budget. The proposal, dubbed the “Budget of Sustainability,” demonstrates the state’s commitment to economic growth and infrastructure development.
The budget breakdown reveals a strategic allocation with 1.766 trillion naira (59 percent) dedicated to capital expenditure and 1.239 trillion naira (41 percent) allocated to recurrent expenditure. In a notable commitment to economic development, the governor has earmarked 908.7 billion naira for the Economic Affairs sector, which encompasses several key ministries and agencies.
During his presentation, Sanwo-Olu emphasized that the budget was crafted around five fundamental pillars: infrastructure sustainability, economic diversification, social inclusion and human capital development, environmental sustainability, and governance and institutional reforms. “This 2025 budget is not just a fiscal document but a blueprint for continuity, resilience and shared prosperity for every Lagosian,” the governor stated, highlighting the comprehensive nature of the financial plan.
The Economic Affairs allocation will benefit crucial sectors including Tourism and Creative Arts, Agriculture, Transportation, Works and Infrastructure, Industry and Investments, Wealth Creation and Employment, Energy and Mineral Resources, Waterfront Infrastructure, and Commerce. This substantial investment reflects the state’s commitment to diversifying its economy and creating sustainable growth opportunities.
In terms of specific sectoral allocations, the budget provides 233.176 billion naira for Environment, 204.005 billion naira for Health, 208.376 billion naira for Education, 124.073 billion naira for Security, Safety and Public Order, and 47.077 billion naira for Social Protection. These allocations demonstrate the government’s balanced approach to development, addressing both economic growth and social welfare.
The governor also announced significant progress in infrastructure development, revealing that 30 road projects, including bridges, have been completed and are scheduled for commissioning from December. In a major development for public transportation, Lagos has signed a Memorandum of Understanding with the Federal Government’s Ministry of Finance Incorporated to develop a 68-kilometer Green Line connecting Marina to the Lekki Free Trade Zone, a crucial industrial corridor.
Regarding funding, Sanwo-Olu outlined that the budget will be financed through a combination of revenue sources, with projected inflows of 2.597 trillion naira and deficit financing of 408.9 billion naira. The revenue sources include an ambitious Internally Generated Revenue target of 1.971 trillion naira and federal transfers of 626.1 billion naira. The deficit will be addressed through a combination of external and internal loans, along with bond issuance, all within the state’s fiscal sustainability parameters.
The governor highlighted the strong performance of the current year’s budget, noting an 84 percent implementation rate as of the third quarter, with expenditure reaching 1.423 trillion naira. This track record provides confidence in the state’s ability to execute the new, larger budget effectively.
Looking ahead, Sanwo-Olu emphasized the budget’s focus on cultural and recreational infrastructure development, aimed at preserving Lagos’s heritage while unlocking tourism potential. “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 tourism economy by creating spaces for recreation and artistic expression,” he explained.
The governor assured residents that the budget is designed to impact lives across all segments of society, from students and entrepreneurs in Yaba to farmers and fishermen in Epe and Badagry, and from business executives on Lagos Island to factory workers in Ikorodu. He called for swift scrutiny and passage of the budget by the State House of Assembly, emphasizing its role in recalibrating the state’s economy and strengthening its positive trajectory.
The unprecedented size and scope of the 2025 budget reflect Lagos State’s ambition to maintain its position as Nigeria’s economic hub while addressing the growing demands of its rapidly expanding population. The focus on sustainability and balanced development suggests a long-term vision for creating a more resilient and prosperous megacity.
