Explainer: What Sanwo-Olu’s N4.44tn Lagos Budget Reordering Means

Kehinde Adeleye

Lagos State Governor Babajide Sanwo-Olu’s request to reorder the state’s N4.44 trillion 2026 budget is essentially a proposal to move money from projects and government agencies that are not spending their allocations fast enough to other projects that can be implemented before the end of the year.

But the Lagos State House of Assembly is making it clear that the exercise should not simply be about shifting figures on paper. Lawmakers want the money to translate into visible projects and services for residents.

Why is the government seeking a budget reordering?

The 2026 Lagos budget was signed into law in January. By the end of the second quarter, overall implementation stood at 69 per cent.

However, there was a difference between recurrent and capital spending:

Recurrent expenditure: 73 per cent implemented

Capital expenditure: 66 per cent implemented

This means that while government agencies had spent a significant portion of their allocations, some capital projects were progressing more slowly than others.

The government therefore wants to identify allocations tied to projects with slow implementation and redirect some of those funds to projects that can be completed more quickly.

Does this mean Lagos is increasing its N4.44tn budget?

Not necessarily.

The proposal is primarily about reordering the existing budget, rather than simply giving the state more money.

In simple terms, imagine Lagos budgeted ₦100 for five projects, but two of those projects are moving slowly and are unlikely to use their allocations this year. The government could seek approval to move part of that money to projects that are ready to proceed.

Why are lawmakers concerned?

The lawmakers appear to be asking an important question:

Will the budget reordering actually produce more completed projects, or will it only make the government’s expenditure figures look better?

Hon. Aro Moshood, for instance, wants funds withdrawn from underperforming areas to go into projects that can actually be completed and delivered to residents.

He also wants constituencies across Lagos to benefit from the exercise.

What is Gbolahan Yishawu’s concern?

Hon. Gbolahan Yishawu cautioned against assuming that a low budget implementation rate automatically means money should be taken away.

His argument is that lawmakers should first establish why a project or agency is performing poorly.

For example, a project may be delayed because of land issues, procurement problems, design changes or other factors. Simply removing its funding may not solve the underlying problem.

Why did flooding and LAWMA enter the debate?

Hon. Kehinde Joseph urged lawmakers to consider Lagos’ environmental challenges when deciding where additional funds should go.

This includes: Flooding, Drainage, Waste management, LAWMA operations

The argument is that if additional funds are available, they should be directed towards areas where residents can see an immediate and measurable impact.

What happens next?

The proposal has passed second reading at the Lagos Assembly and has now been referred to the House Committee on Economic Planning and Budget for detailed consideration.

The committee is expected to study the proposal and submit its report when the House resumes on August 31.

The Assembly will then consider the committee’s recommendations before deciding whether to approve the proposed budget changes.

The bigger issue

At its core, the debate is not simply about N4.44 trillion or moving money between budget lines.

It is about whether Lagos can make better use of the money already appropriated and ensure that available funds are channelled into projects that can be completed and felt by residents before the end of 2026.

That is why the Assembly’s demand for project viability, constituency impact and visible delivery could become as important as the actual budget figures.