Lagos State Governor Babajide Sanwo-Olu has signed the 2025 Appropriation Bill into law, approving a record-breaking budget of N3.366 trillion.
Recall that Lagos State Governor, Babajide Sanwo-Olu, had on November 21, 2024, presented the Appropriation Bill of over N3 Trillion for year 2025 to members of the State House of Assembly for consideration and approval.
The Governor, during the presentation, told the lawmakers that the budget has a deficit financing of N408,902 billion adding that the deficit would be financed from external and internal loans and bonds.
It was structured around five key pillars, including; Infrastructure Sustainability, Economic Diversification, and Institutional Reforms.
The assembly had jerked Governor Babajide Sanwo-Olu N3.005trn 2025 Budget proposal to
N3,366,815,224,144 (N3.37trn) and passed it into law.
The governor signed the budget, themed: “Budget of Sustainability,” on Thursday, at the Lagos House, Ikeja which hadin attendance; Deputy Governor, Dr. Obafemi Hazmat, Secretary to the State Goverment, SSG, Bimbola Salu-Hudeyin, members of the Lagos State Houses of Assembly, led by Chairman of the joint committee on Appropriation and Finance, Sa’ad Olumoh, members of the state Executive Council.
The Lagos State House of Assembly, had also on Monday, approved a total sum of N3,366,815,224,144 as the total budget of the state for 2025.
The approval followed the presentation of a report on the budget by Olumoh, and the subsequent voice votes by lawmakers at a sitting presided over by the Speaker, Mudashiru Obasa.
According to Sanwo-Olu, “the budget is a blueprint for continuity, resilience and prosperity for residents.”
Giving the details, the governor stated, “The Year 2025 Budget as proposed has a total budget size of N3,005,935,198,401,comprising a total Revenue of N2,597,034,000,000 and Deficit Financing of N408,902,000,000.
“Total Revenue comprises our Internally Generated Revenue of N1,970,897,000,000, and total Federal Transfers of N626,137,000,000.”
Sanwo-Olu, proposed N1,239,818,000,000, trillion, comprising total overhead, personnel cost and recurrent debt service, which is as follows:
Total Overhead Cost: N722.586 billion, as follows:
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, we propose a total figure of N1.766,117 Trillion, as follows: Capital expenditure: N1.452 Trillion, while repayments is: N313.515 Billion.”
Sectoral allocation
The sectoral allocation in the budget shows: Economic Affairs – N908.699 billion, Environment, N233.176 billion, Health N204.005 billion, Education, N 208.376 billion, Security, Safety and Public Order, N124.073 billion, while Social Protection is N47.077 billion.
The budget size is made up of recurrent expenditure of N1.239 Trillion, representing 41 per cent and capital expenditure of N1.766 Trillion, representing 59 percent.
The deficit financing, which is within the fiscal sustainability parameters, Sanwo-Olu stressed, shall consist of external and internal loans and bonds.
Approved budget
The approved budget is made of N1,295,630,197,452 as recurrent expenditure while N2,071,185,026,692 is earmarked as capital expenditure for the year ending December 31, 2025.
