Lagos State Governor Babajide Sanwo-Olu presented the 2025 budget to the House of Assembly, outlining the state’s priorities for the upcoming year.
The budget focuses on boosting tourism and creative sectors as part of a broader economic strategy. Infrastructure development and key industries are also major priorities.
The proposed budget totals N3.005 trillion, with a capital expenditure allocation of N908.7 billion aimed at supporting key sectors such as 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 represents a significant investment in the Economic Affairs sector, which comprises various Ministries, Departments, and Agencies, according to ThisDay.
The 2025 Appropriation Bill, dubbed the “Budget of Sustainability,” marks a 32.5% increase from the current year’s budget of N2.3 trillion. Governor Sanwo-Olu explained that the budget’s increase reflects the growing demand from citizens for sustainable development programs and initiatives to boost productivity and stimulate further economic growth.
The governor emphasized that the 2025 budget was designed to foster stability and address the core needs of Lagosians.
The budget focuses on five key pillars: infrastructure sustainability, economic diversification, social inclusion and human capital development, environmental sustainability, and governance and institutional reforms. He stressed that maintaining investments in infrastructure would serve as a foundation for continued growth.
In his speech, Sanwo-Olu highlighted the completion of 30 road projects, including bridges, across Lagos, all scheduled for commissioning starting next month. Additionally, he announced a Memorandum of Understanding with the Federal Government’s Ministry of Finance Incorporated to begin work on the 68-km Green Line, which will connect Marina to the Lekki Free Trade Zone, a growing industrial hub in Lagos.
He noted that the budget would also focus on revitalizing cultural, religious, and recreational infrastructure, supporting tourism, and preserving Lagos’ rich cultural heritage.
The 2025 budget allocates N1.239 trillion, or 41% of the total budget, to recurrent expenditure, with N1.766 trillion, or 59%, designated for capital expenditure. Financing for the budget will come from projected revenue of N2.597 trillion, with an additional N408.9 billion in deficit financing. Revenue sources include N1.971 trillion from Internally Generated Revenue and N626.1 billion from federal transfers.
The governor noted that the budget’s deficit would be covered through a combination of external and internal loans and bond issuance, all within the state’s fiscal sustainability limits. Sectoral allocations include N233.176 billion for the environment, N204.005 billion for health, N208.376 billion for education, and N124.073 billion for security, safety, and public order. Social protection will receive N47.077 billion.
Sanwo-Olu commended the performance of the 2024 budget, noting that it had been implemented at 84% as of the third quarter. He urged the state legislature to thoroughly scrutinize and quickly pass the 2025 budget, assuring residents that it would have a direct and positive impact on their lives, stimulating economic growth and improving the overall state economy.
“This budget is all about the people of Lagos alone,” he said, highlighting its focus on individuals across the state, from students and entrepreneurs to farmers, market women, and factory workers.
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 towards preserving the rich cultural heritage of Lagos, but also to unlock tourism economy by creating spaces for recreation and artistic expression.
“I am also pleased to note that we have recently signed MoU with MOFI to kick-start exploratory work on the development of the 68-km Green Line, which will connect Marina to the Lekki Free Trade Zone. In 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.
“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.”