Lagos records 87% budget performance, secures fitch upgrade to stable outlook

...As over N130bn in social protection support reaches 18.5m Lagosians

By Sodiq Adelakun

The Lagos State Government has once again demonstrated its fiscal and economic leadership, recording an impressive 87% budget performance in 2024, as Fitch Ratings upgraded the State’s credit outlook to Stable, citing its robust financial management and resilience. 

In a press briefing on Wednesday marking the second anniversary of Governor Babajide Olusola Sanwo-Olu’s second term in office, the Commissioner for Economic Planning and Budget, Mr. Ope George, noted the State’s stellar financial performance, detailing that the 87% budget execution rate reflects effective expenditure management across key sectors. 

Also, Lagos’ revenue increased by a substantial 43%, rising from ¦ 2.08 trillion in 2024 to ¦ 2.97 trillion in 2025, signaling a major leap in the State’s fiscal planning and efficiency.

He also pointed to the Fitch upgrade, which raised Lagos’ Long-Term Foreign and Local-Currency Issuer Default Ratings (IDRs) from ‘B-’ to ‘B’. 

This upgrade reflects Lagos’ strong capacity to meet its financial obligations, driven by impressive Internally Generated Revenue (IGR), positioning the State as a significant outlier in the Nigerian context.

Mr George revealed that the State delivered over N130 billion in social protection initiatives, directly benefiting more than 18.5 million residents. 

These programs included the Transport Subsidy Allowance, aimed at cushioning the effects of the fuel subsidy removal, and the OUNJE EKO food subsidy scheme, which has greatly improved access to affordable, nutritious food for low-income households across Lagos. 

These interventions, according to the Commissioner, were instrumental in driving inflation down to 21% in the State.

He also revealed that Lagos earmarked N1 billion in seed funding for start-ups through the Lagos State Science, Research, and Innovation Council (LASRIC). 

This initiative, he explained, has positioned the State as a frontrunner in Africa’s tech and innovation space, attracting foreign direct investment and boosting the development of innovative solutions and patents.