Lagos 2025 Budget Sparks Assembly Scrutiny Over Borrowing Plans of N409Billion

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The Lagos State House of Assembly has raised concerns over Governor Babajide Sanwo-Olu's proposal to borrow ₦408 billion as part of the 2025 budget, which totals ₦3.005 trillion. During Monday’s plenary session, Speaker Mudashiru Obasa committed the budget proposal to a joint committee on appropriation and finance, directing them to review it and report back within a month.

Hon. Sa’ad Olumoh, Chairman of the House Committee on Budget and Economic Planning, presented an overview of the proposed budget, highlighting the ₦408 billion deficit financing plan. While acknowledging the benefits of loans when utilized effectively, Olumoh emphasized the need for sustainable financing strategies. 

“We must adopt a pragmatic approach to funding the budget to avoid excessive reliance on loans,” Olumoh advised. He urged consideration of alternative funding mechanisms, such as public-private partnerships, to ensure fiscal responsibility. 

Olumoh also called for a thorough scrutiny of the budget to prevent financial wastage, encouraging his colleagues to align spending with realistic projections.

Lawmakers expressed concerns about critical sectors overlooked in the proposed budget. Hon. Gbolahan Yishawu (Eti-Osa 2) noted the lack of allocations for electricity infrastructure and climate change initiatives. He proposed a retrospective analysis of deficit funding over the past five years to evaluate its impact.

Hon. Femi Sheed emphasized the importance of linking borrowing to essential infrastructure projects, such as electricity, while addressing revenue inefficiencies and financial leakages. Similarly, Hon. Desmond Elliot criticized the absence of food security measures in the budget, advocating for initiatives that directly address citizens’ needs.


Governor Sanwo-Olu had presented the budget with a 59% allocation to capital expenditure and 41% to recurrent expenditure. He explained that the deficit financing would be sourced through external and internal loans, as well as bonds.

Deputy Majority Leader Adedamola Richard Kasumu called for a comprehensive review to assess the feasibility and sustainability of the proposed budget allocations. 


The Assembly’s debate reflects a commitment to ensuring fiscal prudence and accountability in managing Lagos State’s resources. As the joint committee begins its review, stakeholders will be watching to see how the Assembly addresses the concerns raised and balances the need for infrastructure development with financial sustainability.


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