Governor Babajide Sanwo-Olu of Lagos State has responded to concerns regarding Lagos's status as Nigeria’s most indebted state, emphasizing that the state’s debt levels are well within sustainable limits. Speaking during an interview on Channels Television’s Politics Today, he explained that Lagos's debt-to-revenue ratio stands at about 28-29%, below the national benchmark of 40%. He reassured the public that Lagos’s debt is an investment in its future growth, citing the state's ability to manage higher debt, with potential capacity to handle up to ₦20 trillion.
Sanwo-Olu pointed to Lagos’s budget expansion and consistent high performance, with a 95% budget implementation rate, as evidence of sound financial management. Despite having the highest domestic debt in Nigeria, he maintained that the investments made through borrowing are aimed at driving long-term development and ensuring future returns for the state.