2025 budget: Lagos govt targets N247bn monthly revenue, lists priority projects

IBRAHIM QUADRI

On Friday, Lagos State Government gave a breakdown of the 2025 Appropriation Bill, with a revenue estimate of N2.968trn.

The revenue estimate represents a monthly target of N247.331 billion.

The State Commissioner for Economic Planning and Budget, Mr Ope George who made the disclosure during a press briefing on 2025 Appropriation Law, at Alausa, Ikeja, also listed priority projects for the citizens of the State.

Lagos State Governor, Mr Babajide Sanwo-Olu, had on November 21, 2024, presented a budget size of M3.005 trn to the State House of Assembly

Eventually, on January 9, 2025, the Governor signed a budget estimate of ₦3.366 trillion into law after it’s passage by the House.

Sanwo-Olu gave his assent to the budget tagged ‘Budget of Sustainability’ at Lagos House, Alausa, saying that the budget aims to address infrastructure, economic diversification, and other critical sectors in the state.

Recall that the Y2024 Budget was a budget size of N2.467trn, with a total revenue of N2.080 trillion and a deficit of (N387.125) The Capital to Recurrent Ratio was 61:39 with Capital Expenditure at N1.515trn and Recurrent Expenditure at N952.431bn.

In comparison with the budget size of N3.366 trillion in 2025, there is an increase of N538bn.

The Commissioner disclosed that as of November 30th, 2024, the Budget’s performance stood at 87%, Revenue performance was 106%, while Capital and Recurrent Expenditure performed at 81% and 97%, respectively.

Giving a breakdown of the N3.366trn of the 2025 budget, which according to the Commissioner, will be funded from a total revenue estimate of N2.968trn, comprising Internally Generated Revenue (IGR):         N2.230trn, Capital Receipts N111.839bn and Federal Transfer           N626.137bn.

The target revenue of N2.968 trillion represents a monthly revenue target of 247.331 billion.

George explained LIRS is expected to contribute 63% (N1.4trn) of the projected IGR, while other MDAs of Government will generate about 37% (N830.177bn).

According to him, the target will be achieved by deepening revenue and increasing the tax net through the deployment of technology, economic intelligence, data gathering and analysis amongst other initiatives.

Goerge said, “We believe that there are huge revenue-generating opportunities in the informal sector, tourism, real estate, transportation, and trade.

“The deficit of ₦398.662bn is projected to be funded by Internal, External Loans, Bond Issuance and others.”

According to the Commissioner, the deficit funding Sources         Provision are External Loan 28.751bn, Internal Loans          203.831bn, Bond Issuance               150.000bn and Others  16.080bn.

A total expenditure of ₦3.367 Trillion is budgeted for Y2025, broken down as follows:

Recurrent Expenditure  1.296trn, Capital Expenditure     2.071trn

Capital to Recurrent ratio =62:38

The component of the Recurrent Expenditure is as follows:

Total Personnel Costs     401.120bn, Total Overhead Costs            799.511bn and Debt Charges           95.000bn.

The Recurrent Expenditure stood at 38% of the Total Budget size, out of which the Personnel Cost is N401.120bn representing 12% of the Total Recurrent Expenditure.

The Personnel Cost in Y2025 increased by N146.003bn compared to Y2024, the increase is a reflection on the State’s commitment to implement the salary increment to cushion the effect of high inflation and the removal of fuel subsidy.

On the other hand, the Capital Expenditure accounts for 62% of the total Budget size. This is a demonstration of the administration’s commitment to massive infrastructure renewal and development as well as the completion of ongoing projects.

The Sectoral allocations is as tabulated below:

General Public Services 398,368,579,418             Public Order and Safety               91,472,518,204               Economic Affairs             162,467,077,787               Environment      75,842,862,616               Housing and Community

Amenities           26,000,691,418

Health   173,847,292,450

Recreation, Culture and

Religion              37,782,405,139

Education           166,310,716,148

Social Protection             32,805,054,933.

Highlights on Infrastructure Development across five divisions include the following:

Construction of Samuel Ekundayo /Toga Road, Badagry; construction of Abaranje Road, Alimosho; construction of Adamo-Akanun-Agunfoye Lugbusi Roads, Ikorodu; construction/Rehabilitation of Roads in Ikeja GRA (Oba Dosunmu Road, Sasegbon Street, Sobo Arobiodu Street e.t.c)

Others include the rehabilitation/Upgrading of the Lekki-Epe Expressway: Phase IIA (18.600 km); completion of the Abule Egba, and Ajah Bus Terminals; construction of Iyana-Ipaja Bus Terminals; construction of the Opebi Link bridge to Maryland that will significantly improve travel time and alternative route options the axis; ehabilitation/Upgrading of Eti-Osa Lekki-Epe Expressway Project from Eleko T-Junction – Abraham Adesanya. ( Phase II); construction of Lekki-Epe  Airport Road and construction of Omu Creek Road.

The rest are, Urban renewal/technical studies on the 4th Mainland Bridge; construction of Lagos Badagry Expressway; dualization of Ojo Road/Baale Adeyemi, Ojo; construction of Lekki/Epe(Orisa) Bridge and approach road and construction of the second phase of Lagos Rail Mass Transit System (LRMT) from mile 2 to okokomaiko.

In addition, the 68km Green Line rail was developed from Marina to the Lekki Free Trade Zone. Completion of 13 new jetties across the State, in addition to the upgrade works ongoing at existing jetties.

Completion of the Stadia in Ikorodu, Badagry, Epe, Ifako-Ijaye, Ketu, Ibeju-Lekki, Sari Iganmu and Ajeromi to facilitate youth development and community sports and construction of NYSC Camp (Permanent Site)

Provision of Housing Units across IBILE, to transform lives and build a resilient and thriving State. (Completion of 444 units of building Projects at Sangotedo Phase II, Completion of 420 units of building Projects at Ajara-Badagry, Completion of 136 units of building Projects at Ibeshe II and Epe. Construction of Egan Phase II and III, among others.)

The Commissioner stressed that “The ‘Budget of Sustainability’ is not just a fiscal document but it’s structured around providing economic stability, environmental stewardship and social equity to ensure that Lagos continues to thrive sustainably for generations to come.

“The Y2025 Budget emphasizes on five key pillars; infrastructure and environmental sustainability, Economic diversification, Social inclusion and Human Capital Development, Governance and institutional reforms.”

Share to