Sanwo-Olu prioritises economic sustainability, environment in N3trn 2025 budget proposal
…Signs MoU with MOFI for development of Green Rail Line
…Achieves 84% budget performance for 2024 budget
By Sodiq Adelakun
Lagos State Governor, Babajide Sanwo-Olu has prioritised sustainable economic growth and the environmental safety of Lagosians in his 2025 budget proposal presented to the Lagos State House of Assembly yesterday.
The Appropriation Bill, termed the “Budget of Sustainability,” was unveiled during a formal presentation to lawmakers at the State House in Alausa, Ikeja.
The proposed N3trn budget is over 60 percent higher than the previous year budget of N1.7 trillion for 2024 indicating an ambitious goal the Governor is putting forward.
In his address, Sanwo-Olu said, “This budget is a blueprint for continuity, resilience, and prosperity for Lagosians. It is structured around five key pillars: Infrastructure, Sustainability, Economic Diversification, and Institutional Reforms.”
He highlighted the blueprint’s goal of addressing developmental challenges while enhancing economic growth and stability across the state.
The proposed budget, totaling N3,005,935,198,401, consists of N2,597,034,000,000 in projected revenue and an impressive deficit financing of N408,902,000,000.
Sanwo-Olu pointed out that the revenue stream would primarily include N1,970,897,000,000 from Internally Generated Revenue as well as Federal Transfers amounting to N626,137,000,000.
Detailing the financial structure, the Governor stated, “The Year 2025 Budget has total overhead, personnel costs, and recurrent debt service allocated at N1,239,818,000, primarily encompassing N722.586 billion for total overhead costs.”
This allocation includes N432.580 billion for overhead, N139.728 billion for subventions, and N150.278 billion for dedicated funds.
On infrastructure, the Governor disclosed that the state has signed an MOU with the Ministry of Finance Incorporated (MOFI) to kickstart exploratory work on the development of the 68km Green Line. He revealed that the green line is important to facilitate trade at the Lekki Free Trade Zone, one of the fastest- growing industrial corridors on the continent.
In terms of capital expenditure, Sanwo-Olu proposed N1.766 trillion, which is predominantly earmarked for critical sectors such as Economic Affairs with N908.699 billion, Environment with N233.176 billion, and Education with N208.376 billion.
“Our recurrent expenditure of N1.239 trillion accounts for 41 percent of the budget, while capital expenditure at N1.766 trillion constitutes 59 percent, demonstrating our commitment to building a sustainable future,” he added.
Addressing the necessity for deficit financing, which conforms to fiscal sustainability parameters, Sanwo-Olu explained that the state would utilise both external and internal loans, as well as bonds, to bridge the funding gap.
Commenting on the performance of the 2024 budget, Sanwo-Olu revealed that as at the third quarter of Y2024, the period ending 30th September 2024, the state had implemented N1.423 trillion of the 2024 Budget, representing 84% of the prorated estimate of N1.700 trillion.
“Actual capital expenditure stood at N770.02 Billion, 77 percent of the prorated estimate of N999.44 Billion, and Actual recurrent expenditure at N653.19 Billion, representing 93 percent of the prorated estimate of N701.53 Billion,” he noted.
