Lagos unveils ₦1.052 trillion Infrastructure blitz in 2025 Budget

The Lagos State Government has allocated ₦1.052 trillion for infrastructural development in its 2025 budget, reinforcing Governor Babajide Sanwo-Olu’s commitment to completing ongoing projects and enhancing the state’s urban landscape.

The Commissioner for Economic Planning and Budget, Mr. Ope George, disclosed this during the Budget Analysis press conference at Alausa, Ikeja, on Friday.

He was joined by his counterparts from various ministries, including Finance, Information and Strategy, Health, Environment, Transport, Education, and Infrastructure, as well as special advisers to the governor.

The total budget size for 2025 stands at ₦3.367 trillion, to be funded through an estimated revenue of ₦2.968 trillion.

This revenue includes ₦2.230 trillion from Internally Generated Revenue (IGR), ₦111.839 billion from capital receipts, and ₦626.137 billion from federal transfers.

George said the Lagos State Internal Revenue Service (LIRS) is expected to generate ₦1.4 trillion, accounting for 63% of the total IGR, while other ministries, departments, and agencies (MDAs) will contribute about ₦830.177 billion, making up 37%.

George emphasised that 80% of the revenue would come from internal sources, ensuring financial sustainability without excessive borrowing, adding that the state planned to achieve this through tax compliance, economic intelligence, and technology-driven revenue collection.

The commissioner said the ₦1.052 trillion allocated for infrastructure, representing 31.27% of the budget, would be directed toward road expansion, public transport, digital infrastructure, and urban renewal.

Among the key projects are the construction of Samuel Ekundayo/Toga Road in Badagry, Abaranje Road in Alimosho, and Adamo-Akanun-Agunfoye Lugbusi Roads in Ikorodu. Several roads in Ikeja GRA, including Oba Dosunmu Road, Sasegbon Street, and Sobo Arobiodu Street, will undergo rehabilitation.

The state will also complete the Lekki-Epe Expressway Phase IIA, spanning 18.6 kilometres, and construct the Opebi Link Bridge to Maryland to improve traffic flow. Other major projects include the upgrading of the Eti-Osa Lekki-Epe Expressway Phase II, the construction of the Lekki-Epe Airport Road, and preparatory work for the 4th Mainland Bridge.

In the public transport sector, George said the state planned to complete the Abule Egba and Ajah Bus Terminals as part of the Bus Reform Initiative, while work will also commence on the Iyana-Ipaja Bus Terminal.

He added that the Lagos Rail Mass Transit System (LRMT) Phase II, which extends from Mile 2 to Okokomaiko, would see significant progress.

Additionally, he said the Green Line rail project, covering 68 kilometres from Marina to Lekki Free Trade Zone, will be expanded, while the government also aimed to complete 13 new jetties across the state while upgrading existing ones to enhance water transportation.

For housing and urban development, George said several housing projects would be delivered across the five IBILE divisions, including 444 housing units at Sangotedo Phase II, 420 units at Ajara-Badagry, and 136 units at Ibeshe II and Epe.

He added that the Egan Phase II and III housing projects would also be completed, saying that in a bid to improve facilities for youth development, the government would construct the NYSC Camp Permanent Site in Epe.

The commissioner disclosed that  the government has set aside ₦287.241 billion, representing 8.5% of the budget, for environmental sustainability projects.

He said this would cover drainage infrastructure development across Lagos to address flooding, preliminary work on six critical natural drainage systems in areas such as Alaba International Market, Kosofe, and Ikorodu, as well as waste-to-energy projects aimed at improving waste management. Greening initiatives will also be prioritised to transform public spaces for recreation and urban aesthetics.

The Commissioner for Finance, Abayomi Oluyomi, assured Lagos residents that the state is managing its finances responsibly.

He noted that only 10% of the budget would be financed through borrowing, with the remaining funds coming from internally generated revenue and creative financing options.

He stressed that the government is committed to economic stability, social equity, and sustainable development, ensuring Lagos remains a leading economic hub in Africa.

The 2025 budget, themed “Budget of Sustainability,” underscores the administration’s dedication to long-term growth, with a strong focus on infrastructure, transport, and urban resilience.

The government urged residents to support these efforts by complying with tax payments, as revenue mobilisation remains crucial in realising the Greater Lagos Vision.