The Lagos State House of Assembly has passed the 2026 Appropriation (Amendment) Bill, approving changes to the state’s budget priorities and paving the way for a N200 billion bond to support major infrastructure and development projects.
The amended budget was approved during plenary after lawmakers considered a request from Governor Babajide Sanwo-Olu to reorder spending priorities for the remainder of the 2026 fiscal year. The Assembly’s Committee on Economic Planning and Budget said the adjustment was necessary because implementation levels varied across ministries, departments and agencies.
The revised budget places greater emphasis on capital projects, with the state’s total 2026 budget put at about N4.44 trillion. The committee said the reordering was intended to improve capital expenditure performance and accelerate the delivery of projects.
The N200 billion bond is expected to finance priority infrastructure, including the Lagos Rail Mass Transit system, the New Massey Children’s Hospital, Lagos Island General Hospital and the Omu Creek Bridge. The bond forms part of Lagos State’s existing N1 trillion Debt and Hybrid Instruments Issuance Programme.
The development is significant because the financing is intended to provide additional resources for major projects at a time when the state is seeking to accelerate infrastructure delivery. However, the borrowing also places emphasis on the need for effective financial management and legislative oversight.
During the Assembly’s consideration of the amendment, lawmakers stressed the importance of monitoring the implementation of the revised budget. The Speaker, Mudashiru Obasa, directed that a clean copy of the amended bill be forwarded to Governor Sanwo-Olu for assent.
Lagos recorded 69 per cent overall budget performance as of June 30, 2026, according to the Assembly committee report. The reordering is therefore designed to redirect resources toward areas with greater implementation needs and priority projects.
The latest approval follows an earlier request by the Lagos Government for Assembly backing for the N200 billion bond and other infrastructure financing arrangements. The bond proceeds are expected to support capital projects across transportation, healthcare and other strategic sectors.
