The Lagos State House of Assembly approved a 2025 budget of N3.366 trillion on Monday, after a joint committee presented a report on the budget. The budget, presented by Governor Babajide Sanwo-Olu in November 2024, aims to promote continuity, resilience, and prosperity for residents. The “Budget of Sustainability” has a deficit financing of N408 billion, which will be covered by external and internal loans and bonds. The budget is structured around five key pillars: Infrastructure Sustainability, Economic Diversification, and Institutional Reforms. After a voice vote by lawmakers, the budget was approved by the Speaker, Mudashiru Obasa.
Providing further details, the governor explained, “The proposed budget for 2025 amounts to N3,005,935,198,401, which includes total revenue of N2,597,034,000,000 and a deficit of N408,902,000,000. “Total revenue consists of N1,970,897,000,000 in internally generated revenue and N626,137,000,000 in federal transfers.”
Sanwo-Olu proposed N1,239,818,000,000 for total overhead, personnel costs, and recurrent debt service, broken down as follows:
-Total Overhead Cost: N722.586 billion, distributed as:
– Overhead: N432.580 billion
– Subventions: N139.728 billion
– Dedicated Funds: N150.278 billion
-Total Personnel Cost**: N392.000 billion
-Recurrent Debt Charges**: N125.232 billion.
For capital expenditure, the governor proposed a total of N1.766 trillion, which is allocated as follows:
Capital Expenditure: N1.452 trillion
Repayments: N313.515 billion
The budget’s sectoral allocations are as follows: Economic Affairs – N908.699 billion; Environment – N233.176 billion; Health – N204.005 billion; Education – N208.376 billion; Security, Safety, and Public Order – N124.073 billion; and Social Protection – N47.077 billion.
The overall budget is comprised of N1.239 trillion in recurrent expenditure (41%) and N1.766 trillion in capital expenditure (59%). The governor emphasized that deficit financing, which aligns with fiscal sustainability guidelines, will involve both external and internal loans and bonds.The approved budget includes N1,295,630,197,452 for recurrent expenditure and N2,071,185,026,692 for capital expenditures for the year ending December 31, 2025.
Following the approval, Speaker Obasa instructed the Clerk of the House, Olalekan Onafeko, to send a finalized copy of the passed budget to Governor Sanwo-Olu for his approval. The Speaker also praised his colleagues for their diligent work in facilitating the budget’s passage.
During plenary, the House also approved a bill aimed at consolidating all laws related to local government administration in Lagos State. This bill includes provisions reflecting constitutional amendments and changes made by the National Assembly that directly impact local governments in the state.