Lagos’ N3tn 2025 Budget Prioritises Growth in Tourism, Economic Affairs

Segun James

The tourism and creative sector is expected to take a huge leap forward in Lagos, with the sector as well as other key economic areas, taking a chunk of the state’s expenditures in 2025 fiscal year.
Governor Babajide Sanwo-Olu laid bare what would be the priorities of the Lagos government in the coming year, as he presented the State’s 2025 budget to the House of Assembly yesterday.
The governor proposed a total of N3.005 trillion budget estimates, earmarking a huge capital investment of N908.7 billion to Economic Affairs sector — a cluster of key Ministries, Departments and Agencies (MDAs).

They comprise 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, christened “Budget of Sustainability”, represents a 32.5 per cent increase over the current year budget, totalling N2.3 trillion.
The increment, Sanwo-Olu said, 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, including 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 build up momentum for more growth, stressing that his administration’s infrastructural drive would further get a boost in the coming fiscal year.

Sanwo-Olu disclosed that the government had completed 30 roads projects, including bridges, across the State, which had all been scheduled for commissioning from beginning of next month.
The governor also announced that Lagos had sealed a Memorandum of Understanding (MoU) with the Federal Government’s Ministry of Finance Incorporated (MOFI) to kick-start 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 tourism economy by creating spaces for recreation and artistic expression.
“I am also pleased to note that we have recently signed MoU with MOFI to kick-start 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.”
The 2025 budget proposal is made up of recurrent expenditure of N1.239 trillion, representing 41 per cent of the total budget, and a capital expenditure of N1.766 trillion, which represents 59 per cent of the budget.

Sanwo-Olu disclosed that the state would be financing the budget through a combination of projected revenue inflow of N2.597 trillion, and a deficit financing of N408.9 billion. The revenue sources, he said, include Internally Generated Revenue (IGR) projected to be N1.971 trillion, and federal transfers of N626.1 billion.

The governor said the budget’s deficit would be financed through external and internal loans, and issuance of bonds, which, he said, would be within the State’s fiscal sustainability parameters.
Highlighting the sectoral allocation in the 2025 budget, he said Lagos Government will be spending N233.176 billion in Environment, N204.005 billion  in Health, N208.376 billion in Education, N124.073 billion in Security, Safety and Public Order, while Social Protection will gulp N47.077 billion.
Sanwo-Olu described the performance of 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 performance as at the end of third quarter.

While presenting the 2025 budget, the governor urged the lawmakers to play their part in ensuring thorough scrutiny of the proposal, just as he called for its speedy passage.
Sanwo-Olu said: “Let me assure the House that this budget is not just a statement of intentions but a practical, actionable framework designed to impact lives.
“From students and entrepreneurs in Yaba to the farmers and fishermen in Epe and Badagry, from the business executives and market women on Lagos Island to the factory workers in Ikorodu, this budget is all about the people of Lagos alone.
“I also assure our residents of my commitment towards ensuring that this proposed budget is able to effectively recalibrate the state’s economy, stimulate economic growth and strengthen the positive trajectory.”