Economy
2023 Budget: Lagos to spend 27.3% for modern infrastructure
The Lagos State Government says 27.3 per cent of its 2023 Budget, amounting to N482.86 billion will be expended to provide modern infrastructure to the residents. The Commissioner for Economic Planning and Budget, Mr Samuel Egube, made this known in Ikeja during a news conference on the analysis of the 2023 budget for the state. Egube said the 2023 Budget, christened “Budget of Continuity’’’, was prepared to continue the good work of the present administration, especially in delivering reliable and sufficient infrastructure that met the needs of a 21st century city. He said the state government was committed to ensuring that the dividend from its investments in Integrated Transport Infrastructure would be felt by the residents of the state.
According to him, the Integrated Transport Infrastructure will materialise into the birth of the functional light rail, Red-Blue System, the first of its kind by a sub-national government in Africa and the 37km Fourth Mainland Bridge. “These will reduce commute time to millions of Lagosians, reduce congestion on the existing Carter, Eko, Third Mainland Bridges and Ikorodu Road, thus, increasing productivity, quality of life and improving the overall transportation system in the state,” he said. Egube said that the infrastructure budget captured in the budget included the construction of the second phase of the blue line from Mile 2 to Okokomaiko, completion of eight stadia across the five IBILE divisions of Lagos State, to facilitate youth development, engagement and community sports.
The commissioner said that there would be continuous construction and rehabilitation of schools across the state to improve access to quality education. He said the budget would ensure completion of the 130-bed New Massey ultra-modern and fit for purpose pediatric programmed and emergency General Hospital that would be the largest specialist children hospital in Sub-Saharan Africa. “Others include the completion of the modern 280 beds General Hospital serving the people of Ojo and its environs, which is currently at 47 per cent completion and completion of the mental health facility in Ketu Ereyun in Epe Local Government.
“Also, completion of the Opebi Link bridge to Maryland that will improve significantly travel time and alternative route options in the axis, rehabilitation/upgrading of Phase II Eti-Osa-Lekki-Epe Expressway Project from Eleko T-Junction – Abraham Adesanya, among others,” Egube said. He said that “most of these projects were contractor funded, with structures that provided beneficial payment terms that gave the state upfront value (front loaded) ahead of payments; thereby increasing the sustainability benefits to the state.’’ Egube said that the state government had allocated 13 per cent of the budget for the provision of affordable and world-class education, healthcare and social services for its teeming populace, to make the system accessible and affordable. He said that human capital continued to be an area of deep interest to the state, as a population that was healthy, skilled and inclusive could only convert the opportunities to value. According to him, the state government intends to expand its effort in social interventions, with an investment of N9.6 billion, as against N8.3 billion recorded in Year 2022 Social Intervention & Humanitarian Programme that will serve as support for micro and small businesses.
“We will continue to procure training equipment, empowerment tools for graduates in skills and vocational centres across the state. The government has reiterated its stand in continuing to investment in provision of affordable homes for the people of Lagos, through its social housing programme by injecting N67.1 billion. Some of the social housing programme the budget targets include the completion of 444 units of building projects at Sangotedo Phase ll. Others are completion of 420 units of building projects at Ajara, Badagry Phase ll and the construction of 136 units of building projects at Ibeshe ll, among others,” he said. He said that the government was committed towards the state’s five-year Agric road map, which had seen to the inauguration of the Imota Rice iills, to provide support to farmers and improve food systems. He said that in addition to this, the state would invest N45.1 billion for food security, through Cattle Feedlot Project, Fish Processing Hub Programmes and Wholesale Produce Hub & Market.
He added that this would improve wholesomeness of food, reduction in food prices and optimisation of the agricultural sector. Egube said that the N86 billion investments in Public Order and Safety Sector showed the state’s continuous commitment to ensuring that Lagos was safe for living, working and investment. He said N12 billion had been earmarked for the Provision of Rescue and Emergency Operation Equipment for Disaster Management and provision had been made for surveillance and body cameras for security monitoring. According to him, the 2023 Budget will invest in strengthening intelligence gathering/capacity building capabilities, together with improving the ease of doing business through the Smart-City project, the Lagos new Data Centre Project, Eko Excel Project, E-GIS and the Oracle Upgrade Project. “The state approved Year 2023 Budget of N1.768 trillion which is made up of N1.020 trillion as capital expenditure and N748.097 billion as recurrent expenditure with debt charges inclusive, resulting in a capital to recurrent ratio of 58:42. The total revenue is estimated at N1.418 trillion, while deficit-funding requirement is N350.411 billion, which at 25 per cent of total revenue implies that the budget is strongly dependent on revenue,” he said. The commissioner urged the residents and those that had business with the state to be tax conscious and fulfil their responsibilities as and when due.
The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.
The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.
He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.
“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”
Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”
The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.
With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.
Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.
The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.
He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.
Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.
The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.
The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%.
The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.
Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.
The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.
Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.
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