South-West Governors Unveil ₦8.7tn Joint Budget Plan for 2026

South-West states have proposed a combined budget of about N8.7 trillion for the 2026 fiscal year, with capital expenditure accounting for more than half of the projected spending.

The proposal was disclosed at a regional economic outlook forum, where policymakers and analysts examined how recent national reforms could be translated into subnational growth and improved welfare outcomes.

Capital expenditure is estimated at N4.54 trillion, reflecting increased focus on infrastructure and productivity-enhancing investments, although rising debt levels remain a concern for fiscal sustainability.

Lagos State accounts for more than half of the regional budget, underscoring its economic dominance within the zone. Speakers at the forum noted that global developments, including tighter monetary conditions, geopolitical tensions, and increased investment in artificial intelligence, are expected to shape financing conditions in 2026.

Participants stressed the need for states to strengthen internally generated revenue, improve budget implementation, and leverage public-private partnerships to meet development objectives.