Lagos Assembly Passes 2026 Budget Amendment Bill, Approves N200bn Bond

The Lagos State House of Assembly has passed the 2026 Appropriation (Amendment) Bill into law, approving the reordering of the state’s budget priorities and an increase in the proposed bond issuance to N200 billion.

The bill was passed during plenary on Tuesday after lawmakers considered and adopted the report of the House Committee on Economic Planning and Budget.

The amendment followed a request by Governor Babajide Sanwo-Olu for the reordering of priorities under the 2026 budget, with the aim of improving the implementation of capital projects during the remaining months of the fiscal year.

Presenting the committee’s report, its chairman, Olumoh Sa’ad, said differences in the implementation of capital allocations across ministries, departments and agencies had made the review necessary.

The committee said the state recorded 69 per cent overall budget performance as of June 30, with recurrent revenue at 79 per cent, recurrent expenditure at 73 per cent and capital expenditure at 66 per cent.

Under the reordered budget, allocations were adjusted to focus more resources on priority projects, including transportation infrastructure, hospital projects, housing, drainage, environmental sanitation, waste management, security and emergency equipment.

Projects specifically identified include the second phase of the Blue Line Rail from Mile 2 to Trade Fair, completion and equipping of the new Massey Street Children’s Hospital, the 280-bed General Hospital in Ojo, the Ketu-Ejinrin Psychiatric Hospital and the Omu Creek project.

The Assembly also approved an increase in the state’s proposed bond issuance from N150 billion to N200 billion. The bond is expected to support key infrastructure and development projects across Lagos.

Following the adoption of the committee’s recommendations, Speaker Mudashiru Obasa directed the Clerk of the House to forward a clean copy of the amendment bill to Governor Sanwo-Olu for assent.

The Assembly also stressed the importance of legislative oversight to ensure that funds allocated under the amended budget are applied to the approved projects and priorities.