The Lagos State Government in southwest Nigeria has expressed confidence in financing its ₦3.367 trillion budget for 2025 without resorting to borrowing, reaffirming its commitment to fiscal responsibility and sustainable economic growth.
The assurance was given by the Commissioner for Economic Planning and Budget, Mr. Ope George, during a press conference in Ikeja, where he provided an appraisal of the 2025 budget.
The briefing was attended by Commissioner for Finance, Abayomi Oluyomi, alongside other top government officials from various ministries, departments, and agencies, underscoring the administration’s strategic approach to financial management and economic stability.
2025 BUDGET: LAGOS EARMARKS N1,052TRN FOR INFRASTRUCTURAL DEVELOPMENT
•Commissioners Reiterate Sanwo-Olu’s Commitment to Completion of Ongoing Projectshttps://t.co/FBiUeaRqOh@jidesanwoolu @drobafemihamzat @opegeorge_mepb @gboyegaakosile @gbenga_omo @BSaluHundeyin @Mr_JAGs… pic.twitter.com/gwaGU1lZKN
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George maintained that the state government has put strategic plans in place to generate more money to take care of her budget deficit.
Giving a breakdown of the N3.366trn of the 2025 budget, which according to the Commissioner, will be funded from a total revenue estimate of N2.968trn, comprising internally generated revenue (IGR), N2.230trn, capital receipts (N111.839bn), and federal transfers (N626.137bn).
The target revenue of N2.968 trillion represents a monthly revenue target of 247.331 billion.
George explained that the Lagos Internal Revenue Service, LIRS, is expected to contribute 63% (N1.4 trillion) of the projected IGR, while other MDAs of government will generate about 37% (N830.177 billion).
According to him, the target will be achieved by deepening revenue and increasing the tax net through the deployment of technology, economic intelligence, data gathering, and analysis, among other initiatives.
George said, “We believe that there are huge revenue-generating opportunities in the informal sector, tourism, real estate, transportation, and trade. The deficit of ₦398.662bn is projected to be funded by internal and external loans, bond issuance, and others.”
According to the Commissioner, the deficit funding sources are External Loan: 28.751bn, Internal Loans: 203.831bn, Bond Issuance: 150.000bn and others: 16.080 billion.
Budget Breakdown
A total expenditure of ₦3.367 trillion is budgeted for Y2025 with recurrent expenditure taking 1.296 trillion, while capital expenditure is allocated 2.071 trillion, and the capital-to-recurrent ratio was out at 62:38.
The component of the recurrent expenditure is as follows:
Total Personnel Costs: 401.120bn
Total Overhead Costs: 799.511bn
Debt Charges: 95.000 bn.
The recurring expenditure, according to him, stood at 38% of the total budget size, out of which the personnel cost is N401.120bn, representing 12% of the total recurring expenditure.
“The personnel cost in Y2025 increased by N146.003bn compared to Y2024; the increase is a reflection of the state’s commitment to implement the salary increment to cushion the effect of high inflation and the removal of fuel subsidy.”
“On the other hand, the capital expenditure accounts for 62% of the total budget size. This is a demonstration of the administration’s commitment to massive infrastructure renewal and development as well as completion of ongoing projects,“ he said
Sectoral allocations
General Public Services: 398,368,579,418
Public Order and Safety: 91,472,518,204
Economic Affairs: 162,467,077,787 Environment: 75,842,862,616
Housing and Community Amenities: 26,000,691,418
Health: 173,847,292,450
Recreation, Culture and Religion: 37,782,405,139 Education: 166,310,716,148
Social Protection: 32,805,054,933.
He highlighted some infrastructure development across five divisions of the state to include.
“Construction of Samuel Ekundayo/Toga Road, Badagry; construction of Abaranje Road, Alimosho; construction of Adamo-Akanun-Agunfoye Lugbusi Roads, Ikorodu; construction/rehabilitation of roads in Ikeja GRA (Oba Dosunmu Road, Sasegbon Street, Sobo Arobiodu Street, e.t.c.
“Others include rehabilitation/upgrading of the Lekki-Epe Expressway: Phase IIA (18.600 km); completion of the Abule Egba and Ajah bus terminals; construction of Iyana-Ipaja bus terminals; construction of the Opebi Link bridge to Maryland that will significantly improve travel time and alternative route options the axis; rehabilitation/upgrading the Eti-Osa Lekki-Epe Expressway Project from Eleko T-Junction-Abraham Adesanya (phase II); construction of Lekki-Epe Airport Road; and construction of Omu Creek Road.
“The rest are urban renewal/technical studies on the 4th Mainland Bridge; construction of the Lagos Badagry Expressway; dualisation of Ojo Road/Baale Adeyemi, Ojo; construction of the Lekki/Epe (Orisa) Bridge and approach road; and construction of the second phase of the Lagos Rail Mass Transit System (LRMT) from mile 2 to okokomaiko.”
Other projects
He said In addition, the state will further develop the 68km Green Line rail from Marina to the Lekki Free Trade Zone, complete13 new jetties across the State, and complete the Stadia in Ikorodu, Badagry, Epe, Ifako-Ijaye, Ketu, Ibeju-Lekki, Sari Iganmu and Ajeromi to facilitate youth development, as well as provide housing units across IBILE to transform lives and build a resilient and thriving state, among others.
The Commissioner, however, stressed that the 2025 budget is not just a fiscal document; it’s structured around providing economic stability, environmental stewardship, and social equity to ensure that Lagos continues to thrive sustainably for generations to come.
The 2025 Budget emphasises five key pillars: infrastructure and environmental sustainability, economic diversification, social inclusion and human capital development, governance, and institutional reforms.
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