The Lagos State House of Assembly has passed into law the 2026 Budget Reordering Bill, retaining the state’s total appropriation at about ₦4.44 trillion while adjusting allocations to address disparities in the implementation of capital projects across government ministries, departments and agencies.

The bill, presented by Governor Babajide Sanwo-Olu, was passed on Tuesday after lawmakers considered and adopted the report of the House Committee on Economic Planning and Budget.

The committee said the reordering became necessary because some MDAs had recorded substantial implementation of their capital allocations, while others had recorded lower levels of implementation. According to the lawmakers, the disparity was affecting the delivery of projects and the overall performance of the 2026 budget.

The committee said the adjustment would allow the state government to take a more focused approach to capital investment, accelerate the execution of priority projects and improve the implementation of the budget.

As of June 30, 2026, the committee said overall budget performance stood at 69 per cent. Recurrent revenue had recorded 79 per cent performance, while recurrent expenditure stood at 73 per cent and capital expenditure at 66 per cent.

Under the revised framework, ₦2.0769 trillion is allocated to recurrent expenditure, while ₦2.3676 trillion is earmarked for capital expenditure, bringing the total revised budget to ₦4,444,509,386,748.

The revised allocations place emphasis on transportation infrastructure, the completion of hospital projects, housing, environmental sanitation and waste management, security and emergency equipment, as well as other critical infrastructure across the state.

The 2026 budget was originally presented to the Assembly by Sanwo-Olu in November 2025 as a ₦4.237 trillion proposal. The Assembly subsequently approved about ₦4.44 trillion, comprising approximately ₦2.11 trillion for recurrent expenditure and ₦2.34 trillion for capital projects.

The governor later signed the approved 2026 appropriation into law, describing it as the “Budget of Shared Prosperity” and pledging to work with the legislature to ensure implementation.

Following the adoption of the budget reordering report, Speaker Mudashiru Obasa put the bill to a vote, after which the lawmakers passed it into law.

The latest adjustment is therefore aimed primarily at reallocating available resources towards projects with stronger implementation needs, rather than increasing the overall size of Lagos State’s 2026 budget.

The Assembly subsequently directed that the resolutions be communicated to the relevant authorities for implementation.