Governor of Lagos State, Mr. Babajide Sanwo-Olu delivering his budget speech during the presentation of the Y2024 Budget Estimates to the State House of Assembly, at the Assembly complex, Alausa, Ikeja, on Thursday, 21 November 2024
Lagos’ N3trn 2025 budget prioritises growth in tourism, economic affairs sectors
• Work begins on Green Rail Line next year, says Sanwo-Olu, presents budget proposal
•30 newly completed road projects, bridges scheduled for commissioning December – Governor
Tourism and creative sector is about to take a huge leap forward in Lagos. The sector, with other key economic areas, will gulp a chunk in the State’s expenditures in the 2025 fiscal year.
Governor Babajide Sanwo-Olu laid bare what would be priorities of the Lagos State Government in the coming year as he presented the State’s 2025 budget to the House of Assembly, on Thursday.
The Governor proposed a total of N3.005 trillion budget estimates, earmarking a huge capital investment of N908.7 billion to the Economic Affairs sector—a cluster of key MDAs, comprising Tourism and Creative Arts, Agriculture, Transportation, Works and Infrastructure, Industry and Investments, Wealth Creation and Employment, Energy and Mineral Resources, Waterfront Infrastructure, and Commerce.
The 2025 Appropriation Bill, christened “Budget of Sustainability,” represents a 32.5 per cent increase over the current year budget, totaling N2.3 trillion.
The increment, Sanwo-Olu said, reflected the growing citizens’ demands for sustainable interventions in programmes and projects that would further raise productivity and energise economic growth in the State.
In response to citizens’ demands, he said the proposed budget was structured to ensure stability, stewardship and social equity around five key pillars, including infrastructure sustainability, economic diversification, social inclusion and human capital development, environmental sustainability, governance and institutional reforms.
The Governor noted that sustaining investment in infrastructure in key areas of priority would enable the State to build up momentum for more growth, stressing that his administration’s infrastructural drive would further get a boost in the coming fiscal year.
Sanwo-Olu disclosed that the Government had completed 30 road projects, including bridges, across the State, which had all been scheduled for commissioning from the beginning of next month.
The Governor also announced that Lagos had sealed a Memorandum of Understanding with the Federal Government’s 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—a fast-growing industrial corridor in Lagos.
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 the tourism economy by creating spaces for recreation and artistic expression.
“I am also pleased to note that we have recently signed a 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. 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.”
The 2025 budget proposal is made up of recurrent expenditure of N1.239 trillion, representing 41 per cent of the total budget, and a capital expenditure of N1.766 trillion, which represents 59 per cent of the budget.
Sanwo-Olu disclosed that the State would be financing the budget through a combination of projected revenue inflow of N2.597 trillion, and a deficit financing of N408.9 billion. The revenue sources, he said, 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 and the issuance of bonds, which, he said, would be within the State’s fiscal sustainability parameters.
Highlighting the sectoral allocation in the 2025 budget, Governor Sanwo-Olu said the Lagos State Government will be spending N233.176 billion in Environment, N204.005 billion in Health, N208.376 billion in Education, N124.073 billion in Security, Safety and Public Order, while Social Protection will gulp N47.077 billion.
Sanwo-Olu described the performance of the current year’s budget as “excellent”, noting that the 2024 budget had been implemented to the tune of N1.423 trillion, representing 84 per cent performance as at the end of the third quarter.
While presenting the 2025 budget, the Governor urged the lawmakers to play their part in ensuring thorough scrutiny of the proposal, just as he called for its speedy passage.
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. The development of any megacity like ours is the responsibility of both the public and private sectors. To this end, we will continue to explore public-private-partnership strategies in the provision of infrastructure, social services, and the conversion of challenges to opportunities within the context of scarce resources.”
The Speaker, Rt. Hon. Mudashiru Obasa, assured the Governor of thorough legislative work on the budget, noting that the House would ensure the proposed spending reflected the yearnings of Lagosians.
The Speaker said: “I will appeal to Mr Governor and Lagosians to give us sufficient time to enable the House to do a thorough job on a financial document that has great influence on the lives of the people. The Assembly would not delay the passage of the budget, but we will be interested in placing a high premium on the need to ensure that the interests of Lagosians are protected socio-economically and politically.”
