The Lagos State Government has initiated plans to create a Wealth Fund aimed at promoting infrastructure development, innovation, and sustainable job creation for the state’s rapidly growing population.
The proposed law, titled “A Bill for a Law to Establish the Lagos State Wealth Fund to Receive, Manage and Invest in a Diversified Portfolio of Medium- and Long-Term Assets for the Benefit of Lagos State and Future Generations,” was presented at a public hearing organised by the Lagos State House of Assembly’s Committee on Finance on Wednesday in Lagos.
Speaker of the Lagos State House of Assembly, Rt. Hon. Mudashiru Obasa, represented by Hon. Solomon Bonu (Badagry I), described the bill as a forward-looking initiative designed to safeguard the state’s economic future and preserve wealth for coming generations.
“This bill represents fiscal foresight and responsible governance. It will institutionalise a framework for saving, investing, and converting current revenues into long-term assets,” Obasa said.
He added that the creation of the Wealth Fund would enable Lagos to channel its resources into technology, innovation, and infrastructure key pillars for sustaining its role as Nigeria’s commercial capital.
“Leadership is not only about today’s consumption but also about preserving value for tomorrow.
”This fund will ensure we build a legacy of financial stability and prosperity,” he said.
Chairman of the House Committee on Finance, Hon. Femi Saheed, said the proposed law would entrench global best practices in fiscal management and prudent investment.
He explained that the fund would serve a dual purpose as a stabilisation mechanism to cushion economic shocks and as an investment vehicle to finance large-scale infrastructure projects.
“The Assembly recognises the need to protect today’s resources for tomorrow’s citizens.
“This initiative aligns with Governor Babajide Sanwo-Olu’s T.H.E.M.E.S. agenda and will position Lagos as a model of sustainable governance, ” Saheed said.
Saheed said the Wealth Fund would draw financing from Lagos’ Internally Generated Revenue (IGR), investment returns, and a dedicated seed capital, while all stakeholder contributions would be reviewed before the bill’s passage.
At the hearing, stakeholders commended the initiative as a strategic move to protect Lagos from future fiscal volatility and strengthen its economic resilience.
Mr. Abayomi Oluyomi, Commissioner for Finance, said the proposed fund was crucial in building a financial buffer against emergencies and economic downturns such as the Ebola outbreak and COVID-19 pandemic, which had previously strained the state’s finances.
“This fund is a long-term stabilisation tool. Lagos’ population is growing rapidly, and so is the demand for infrastructure and jobs.
“Lagos is now one of the fastest-growing tech hubs in the world, and this fund will help us sustain that momentum through continued investment in innovation and digital infrastructure, ” he said.
Oluyomi disclosed that 0.5 per cent of the current state budget, representing N30–N40 billion, would serve as initial capital for the fund, with an additional 3.2 per cent of monthly IGR to be contributed thereafter.
“If well managed, the fund’s balance sheet could eventually surpass that of the state itself. It will be a lasting legacy for Lagosians,” he added.
Representing the Institute of Chartered Accountants of Nigeria (ICAN), Malam Haruna Yahaya, who spoke on behalf of Dr. Yemi Sanni, praised the Lagos Assembly for its initiative and urged strict adherence to international accounting standards.
He recommended that the Wealth Fund comply with International Public Sector Accounting Standards (IPSAS) and suggested a five-year auditor rotation instead of the proposed 10-year term to ensure transparency.
“The fund must maintain global auditing standards. A fellow of ICAN with expertise in public finance should be appointed to the board, while the audit committee chair should be a certified accountant,” he said.
He also proposed that the bill specify clear rules on withdrawals, limiting budget deficits to 20 per cent of annual revenue and requiring Assembly approval for any withdrawal exceeding 25 per cent of the fund’s balance.
Yahaya also called for clarity on the fund’s regulatory relationship with the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).
Mr. Tokunbo Akande, Special Adviser to the CEO of the Lagos Internal Revenue Service (LIRS), commended the Assembly for its inclusive approach but called for provisions to fund the administrative and operational activities of the agency managing the fund.
He also proposed that the fund maintain an official public website to publish audited financial statements, investment reports, and other key updates for citizens’ access.
Deputy Majority Leader, Hon. Adedamola Kasunmu, thanked all participants and said the initiative underscores Lagos’ reputation as a state committed to fiscal discipline and sustainable economic planning.
“This proposed law is about securing the future. Lagos will continue to thrive, no matter the challenges, because we are building systems that protect tomorrow’s prosperity today,” Kasunmu said.
Stakeholders agreed that the Lagos State Wealth Fund could serve as a benchmark for other states across Nigeria, ensuring that the dividends of growth are not only enjoyed today but preserved for future generations.
