In a significant step towards advancing its developmental agenda, Lagos State Governor Babajide Sanwo-Olu on Thursday, January 9th, signed the state’s 2025 Appropriation Bill, valued at N3.36 trillion, into law.
This landmark budget, dubbed the “Budget of Sustainability,” represents the largest ever by any sub-national government in Nigeria, underscoring the state’s ambitious plans for the coming year.
“Budget of Sustainability” Prioritizes Key Sectors
Governor Sanwo-Olu, during the signing ceremony at Lagos House in Ikeja, emphasized the strategic focus of the budget.
“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,” he stated.
“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.”
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%,” he declared.
Five Key Pillars of Development
The “Budget of Sustainability” prioritizes five critical pillars:
Infrastructure Sustainability: Recognizing infrastructure as the bedrock of economic growth, the budget allocates significant resources for the maintenance, upgrading, and expansion of road networks across the state.
Governor Sanwo-Olu emphasized, “Infrastructure sustainability is the backbone of any development agenda.”
Economic Diversification: The budget aims to foster a diversified economy by supporting key sectors, promoting innovation, and creating a conducive business environment. This will involve initiatives to attract investments, support local businesses, and enhance the state’s competitiveness.
Social Inclusion and Human Capital Development: The budget emphasizes social inclusion and human capital development by prioritizing education and healthcare.
“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,” stated Ope George, Commissioner for Economic Planning and Budget.
Environmental Sustainability: Recognizing the urgent need for environmental protection, the budget allocates N287.2 billion to environmental initiatives. This demonstrates Lagos’s commitment to climate action and its leadership role in environmental sustainability at the sub-national level.
Governance and Institutional Reforms: The budget supports ongoing efforts to enhance governance, improve service delivery, and strengthen public institutions. This includes initiatives to improve transparency, accountability, and citizen engagement.
Read Also: Nigeria’s External Debt Servicing Soars 38% in Nine Months, Exacerbating Fiscal Pressures
Funding Structure and Fiscal Prudence
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 mechanisms to ensure financial prudence.
Collaborative Efforts and Legislative Support
Governor Sanwo-Olu 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, Mudashiru Obasa, and the entire members,” he said.
Saheed Olumo, Chairman of the Lagos State House of Assembly Committee on Appropriation Bill, pledged the assembly’s continued support for the administration’s efforts to deliver dividends of democracy to the residents of Lagos State.
A Trend of Increased Fiscal Planning
The 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 address the growing needs of a rapidly developing state.
If You Ask Me
The signing of the N3.36 trillion 2025 budget marks a significant milestone for Lagos State. This ambitious budget, with its focus on infrastructure development, economic diversification, social inclusion, and environmental sustainability, has the potential to drive significant progress and improve the quality of life for all residents.
