Updated: Overhead takes N432.6bn, as Sanwo-Olu presents N3trn 2025 budget

Governor Babajide Sanwo-Olu of Lagos presenting the budget.

Lagos State Governor, Mr Babajide Sanwo-Olu, presented the Appropriation Bill of over N3 trillion for year 2025 to members of the State House of Assembly for consideration and approval, today.

According to Sanwo-Olu, “The budget the themed: ‘Budget of Sustainability’, is a blueprint for continuity, resilience and prosperity for Lagosians.

“It is structured around five key pillars, including Infrastructure, Sustainability, Economic, Diversification, and Institutional Reforms.”

Recall that Governor Sanwo-Olu had, on January 18, 2024, signed the N2.267 trillion 2024 Appropriation Bill of Lagos State into law, ushering in a new expenditure cycle.

The governor presented the Appropriation Bill at a delayed ceremony, held in the State House, Alausa, Ikeja.

Deputy Governor, Dr. Femi Hamzat, and Speaker, House of the Assembly, Mudashiru Obasa, among other dignitaries, were in attendance.

Budget size

Giving the details of the Lagos budget, Sanwo-Olu said: “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 as comprising total overhead, personnel cost and recurrent debt service.

Break down

Total Overhead Cost: N722.586 billion


– 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

Capital expenditure

For capital expenditure, Sanwo-Olu proposed a total figure of N1.766,117 trillion, as follows:

-Capital expenditure: N1.452 trillion

-Repayments: N313.515 billion

Sectoral allocation

The sectoral allocation in the Lagos budget shows:

-Economic Affairs: N908.699 billion

– Environment, N233.176 billion

-Health N204.005 billion

-Education, N208.376 billion

-Security, Safety and Public Order, N124.073 billion

-Social Protection: N47.077 billion

Governor Sanwo-Olu’s Lagos budget for recurrent expenditure of N1.239 trillion, represents 41 per cent, while capital expenditure (N1.766 trillion) is 59 percent.

The deficit financing, which is within the fiscal sustainability parameters, Sanwo-Olu stressed, shall consist of external and internal loans and bonds.

(Vanguard)

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