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Governor Babajide Sanwo-Olu of Lagos has, on Thursday, proposed an ambitious N3.005 trillion budget estimate for next year.
The governor unveiled the proposal during the presentation of the 2025 Appropriation Bill to the House of Assembly for consideration.
The Bill tagged “Budget of Sustainability,” represents a 32.5 percent increase over this year’s N2.3 trillion budget The increment, Sanwo-Olu said, reflected the growing citizens’ demands for sustainable interventions in programmes and projects that would raise productivity and energise economic growth in the state.
The 2025 budget proposal is made up of recurrent expenditure of N1.239 trillion, representing 41 percent of the total budget, and a capital expenditure of N1.766 trillion, which represents 59 percent of the budget.
Sanwo-Olu said the state would finance the estimates through a combination of a projected revenue inflow of N2.597 trillion and a deficit financing of N408.9 billion.
The revenue sources, according to him, include Internally Generated Revenue (IGR) projected to be N1.971 trillion, and federal transfers of N626.1 billion.
The governor said the budget’s deficit would be financed through external and internal loans as well as the issuance of bonds that would be within the state’s fiscal sustainability parameters.
Highlighting the sectoral allocation in the 2025 budget, he said the government would spend N233.176 billion on the Environment; N204.005 billion on Health; N208.376 billion on Education; N124.073 billion on Security, Safety, and Public Order. Social Protection will gulp N47.077 billion.
Sanwo-Olu said that 36 roads and bridges completed by his government across the state have been scheduled for inauguration from the beginning of next month.
The governor also announced that Lagos had sealed a Memorandum of Understanding with the Federal Ministry of Finance Incorporated (MOFI) to kickstart exploratory work on the development of a 68-kilometre Green Line, which will connect Marina and the Lekki Free Trade Zone — a fast-growing industrial corridor.
The Blue Line between Mile 2 and Marina has been running since last year while the Red Line from Oyingbo to Agbado in Ogun State, started running in September.
He said: “This 2025 budget is not just a fiscal document but a blueprint for continuity, resilience and shared prosperity for every Lagosian. As a key economic hub, Lagos stands at a crossroads: a nexus of challenges that test our resolve and opportunities that call for bold action. In crafting this budget, we have listened to our citizens’ voices, studied the global and local economic realities, and reaffirmed our commitment to ensuring that Lagos continues to thrive sustainably for generations to come.
“Next year, we are making significant progress in revitalising cultural, religious, and recreational infrastructure across the state.These initiatives are aimed not only at preserving the rich cultural heritage of Lagos but also to unlock the tourism economy by creating spaces for recreation and artistic expression.
“I am also pleased to note that we have recently signed MoU with the Ministry of Finance Incorporated (MOFI) to kickstart exploratory work on the development of the 68-km Green Line, which will connect Marina to the Lekki Free Trade Zone.
‘’On road construction and repairs, we have completed 36 road projects, including bridges, link bridges, and pedestrian infrastructure, all of which are scheduled for commissioning from December.”
Sanwo-Olu described the performance of the current year’s budget as “excellent.” He noted that the 2024 budget had been implemented to the tune of N1.423 trillion, representing 84 percent performance as of the end of the third quarter.Presenting the 2025 budget, the governor urged the lawmakers to play their part by ensuring that it was thoroughly scrutinised and speedily passed.
Sanwo-Olu said: “Let me assure the House that this budget is not just a statement of intentions but a practical, actionable framework designed to impact lives. From students and entrepreneurs in Yaba to the farmers and fishermen in Epe and Badagry, from the business executives and market women on Lagos Island to the factory workers in Ikorodu, this budget is all about the people of Lagos alone.
“I also assure our residents of my commitment towards ensuring that this proposed budget is able to effectively recalibrate the state’s economy, stimulate economic growth and strengthen the positive trajectory.”