Lagos State Governor, Babajide Sanwo-Olu, has unveiled a comprehensive budget proposal for the year 2025, totaling an impressive N3 trillion, referring to it as the “Budget of Sustainability.”
The ambitious budget aims to address various sectors essential for the continued growth and development of the state.
During his address to the Lagos State House of Assembly, Governor Sanwo-Olu outlined the budget, which stands at N3,005,935,198,401. This includes a total revenue projection of N2,597,034,000,000 and a deficit financing plan of N408,902,000,000.
Key components of the budget reveal a strong focus on internally generated revenue, which is estimated at N1,970,897,000,000. Additionally, the state anticipates federal transfers amounting to N626,137,000,000.
The governor detailed the allocation of recurrent expenditure, which amounts to N1,239,818,000,000. This covers vital areas such as total overhead, personnel costs, and debt service payments. Specific allocations within the recurrent budget include:
– 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
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In terms of capital expenditure, Governor Sanwo-Olu proposed a robust total of N1.766 trillion, which encompasses N1.452 trillion for various projects and N313.515 billion earmarked for repayments.
The budget also highlights significant sectoral allocations, which include:
– 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
Notably, the governor emphasized that the budget allocations reflect a balanced focus, with 41% directed towards recurrent expenditure and 59% towards capital expenditure. He reassured members of the assembly that the planned deficit financing is manageable and aligned with the state’s fiscal sustainability goals, utilizing a mix of external and internal loans as well as bonds.
As discussions begin in the assembly on this substantial financial proposal, the governor expressed confidence that the 2025 budget will pave the way for sustainable growth and improved living standards for residents of Lagos State.
