Governor Babajide Sanwo-Olu of Lagos State has presented a historic N3.01 trillion budget for 2025, aptly named the “Budget of Sustainability,” to the Lagos State House of Assembly. The budget, which was revealed on Thursday, is built around five key pillars: infrastructure sustainability, economic diversification, social inclusion and human capital development, environmental sustainability, and governance and institutional reforms. This substantial fiscal plan underscores the state’s commitment to fostering long-term growth and stability across vital sectors.
Sanwo-Olu outlined that the budget comprises a total revenue of N2.597 trillion, complemented by a deficit financing component of approximately N408 billion. He emphasized that Lagos State’s vision remains focused on creating a balanced and self-sustaining economy, despite the financial challenges and pressures of rapid urbanization.
Focus on Infrastructure: A Foundation for a Sustainable Lagos
In his address, Sanwo-Olu underscored the importance of infrastructure as the backbone of Lagos’s development agenda. Recognizing the state’s burgeoning population and the demand for efficient transport and utility systems, he stressed the necessity of sustainable infrastructure investments. “A greater Lagos ambition will emerge on the back of high-quality infrastructure that keeps pace with our growing population,” he stated. He further highlighted that the government would focus on maintaining, upgrading, and expanding the existing road network over the next three years to address the increasing mobility and connectivity needs of residents.
With infrastructure sustainability set as a priority, the 2025 budget allocates N1.45 trillion towards capital expenditure, including road development and essential public assets. This is a strategic approach to ensuring the state’s infrastructure remains functional, adaptable, and resilient in the face of rapid urban growth, positioning Lagos as a hub of economic productivity and social well-being.
Driving Economic Diversification and Reducing Sectoral Dependence
To foster a robust economy, Sanwo-Olu outlined Lagos State’s commitment to reducing its dependence on a single sector, aiming for a diversified economic base. The 2025 budget earmarks a substantial N908.7 billion for economic affairs, designed to stimulate industries beyond traditional areas and encourage investment across various sectors. Sanwo-Olu emphasized that a diversified economy would safeguard the state against market volatility and global economic fluctuations, creating a resilient and prosperous Lagos for all.
The governor’s strategy includes support for emerging industries, alongside tax cuts estimated at N660 billion, aimed at encouraging local businesses and attracting foreign investments. This fiscal move aligns with the administration’s goal to provide sustainable economic opportunities for Lagos residents while creating a favorable business environment that attracts innovation and entrepreneurship.
Sanwo Olu Commitment to Social Inclusion, Health, and Environmental Sustainability
Sanwo-Olu’s budget demonstrates a commitment to human capital development and environmental sustainability. For the social sector, N208.38 billion has been allocated to education, N204.01 billion to health, and N47.08 billion to social protection, ensuring that vital services are accessible and adequately funded. The governor emphasized that social inclusion is key to enhancing quality of life and fostering a skilled workforce that will contribute to Lagos’s long-term development.
In terms of environmental sustainability, N233.18 billion has been dedicated to environmental affairs. This investment reflects the administration’s proactive approach to tackling environmental challenges, including waste management, pollution control, and climate resilience. Sanwo-Olu noted that sustainable environmental practices are essential to creating a livable, healthy Lagos for future generations and securing the state’s economic and ecological longevity.
Lagos Assembly’s Support and Next Steps
The Lagos State House of Assembly has expressed strong support for the 2025 “Budget of Sustainability.” Speaker Mudashiru Obasa praised Governor Sanwo-Olu’s vision, emphasizing the assembly’s commitment to advancing Lagos’s growth. He announced that the assembly would reconvene on November 29 to discuss and evaluate the proposed budget in greater detail.
Lagos State has seen a steady rise in its budget allocations over recent years, with N2.27 trillion budgeted for 2024 and N1.77 trillion for 2023. This trend signifies the administration’s dedication to escalating investments to meet the expanding needs of the state’s population and infrastructure. If approved, the 2025 budget will further solidify Lagos’s position as a forward-looking, resilient, and economically stable state, setting a standard for sustainable urban governance in Nigeria
