Lagos state will continue to free the roads of gridlock in 2025 following the inclusion of the green rail line in the N1.766 trillion capital votes, representing 59 per cent of the state’s N3.005 trillion budget for next year.
The 68-km Green Line, which will connect Marina to the Lekki Free Trade Zone, a fast-growing industrial corridor in Lagos, is coming on the heels of the commissioned red and blue lines which are now in operation, conveying passengers across the state in measures that relieve the roads and reduce traffic congestion.
The balance of N1.239 trillion of the 2025 budget is for recurrent expenditure in a budget in which tourism and creative sectors are also expected to take a huge leap forward. Together with other key economic areas, they are expected to contribute to the State’s expenditures in the 2025 fiscal year.
The spending plan would be financed with a projected revenue inflow of N2.597 trillion, and a deficit financing of N408.9 billion. The revenue sources are the Internally Generated Revenue (IGR) projected to be N1.971 trillion, and federal transfers of N626.1 billion.
The budget’s N408.9 billion deficit would be financed through external and internal loans and the issuance of bonds within the State’s fiscal sustainability parameters.
Governor Babajide Sanwo-Olu disclosed these on Thursday, including the state’s priorities while presenting the State’s 2025 budget to the House of Assembly.
The Governor proposed a total of N3.005 trillion budget estimates, earmarking a huge capital investment of N908.7 billion to the economic affairs sector—a cluster of key MDAs, comprising Tourism and Creative Arts, Agriculture, Transportation, Works and Infrastructure, Industry and Investments, Wealth Creation and Employment, Energy and Mineral Resources, Waterfront Infrastructure, and Commerce.
The 2025 Appropriation Bill is christened “Budget of Sustainability,” and represents a 32.5 per cent increase over the current year budget, totalling N2.3 trillion.
The increment reflected the growing citizens’ demands for sustainable interventions in programmes and projects that would further raise productivity and energise economic growth in the State.
In response to citizens’ demands, he said the proposed budget was structured to ensure stability, stewardship and social equity around five key pillars of infrastructure sustainability, economic diversification, social inclusion and human capital development, environmental sustainability, governance and institutional reforms.
The Governor noted that sustaining investment in infrastructure in key areas of priority would enable the State to build up momentum for more growth, stressing that his administration’s infrastructural drive would further receive a boost in the coming fiscal year.
Sanwo-Olu disclosed that the Government had completed 30 road projects, including bridges, across the State, and are scheduled for commissioning from the beginning of next month.
The Governor also announced that Lagos had sealed a Memorandum of Understanding with the Federal Government’s Ministry of Finance Incorporated (MOFI) to kickstart exploratory work on the development of the 68-km Green Line, which will connect Marina to the Lekki Free Trade Zone—a fast-growing industrial corridor in Lagos.
He said: “This 2025 budget is not just a fiscal document but a blueprint for continuity, resilience and shared prosperity for every Lagosian. As a key economic hub, Lagos stands at a crossroads: a nexus of challenges that test our resolve and opportunities that call for bold action. In crafting this budget, we have listened to our citizens’ voices, studied the global and local economic realities, and reaffirmed our commitment to ensuring that Lagos continues to thrive sustainably for generations to come.
“Next year, we are making significant progress in revitalising cultural, religious and recreational infrastructure across the state. These initiatives are aimed not only towards preserving the rich cultural heritage of Lagos but also to unlock the tourism economy by creating spaces for recreation and artistic expression.
“I am also pleased to note that we have recently signed a MoU with the Ministry of Finance Incorporated (MOFI) to kickstart exploratory work on the development of the 68-km Green Line, which will connect Marina to the Lekki Free Trade Zone. In road construction and repairs, we have completed 36 road projects, including bridges, link bridges and pedestrian
infrastructure, all of which are scheduled for commissioning from December.”
Highlights of the sectoral allocation in the 2025 budget show N233.176 billion will be spent on the Environment, N204.005 billion on Health, N208.376 billion on Education, N124.073 billion on Security, Safety and Public Order, while Social Protection will gulp N47.077 billion.
Sanwo-Olu described the current year’s budget as “excellent”, noting that the 2024 budget had been implemented to the tune of N1.423 trillion, representing 84 per cent at the end of the third quarter.
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