Lagos State is charting a new path toward long-term prosperity with plans to create a Wealth Fund that will convert part of its revenue into sustainable investments for infrastructure, innovation, and job creation.
The initiative, described as a safeguard for future generations, is set to be backed by legislation currently before the Lagos State House of Assembly.
The proposal took centre stage during a public hearing organised by the Assembly’s Committee on Finance on Wednesday, where Speaker Mudashiru Obasa hailed the plan as a “visionary step” that would secure the state’s economic future.
The bill, 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,” seeks to institutionalize prudent financial management and create a framework for sustainable investment.
Obasa, represented by Mr Solomon Bonu (Badagry I), said the proposed fund reflects fiscal foresight and responsible governance, emphasising that leadership must be about preserving resources for tomorrow rather than consuming them today.
“This is about transforming today’s revenue into tomorrow’s wealth through innovation and technology,” he said, urging stakeholders to contribute meaningfully to shaping the legislation.
Chairman of the House Committee on Finance, Mr Femi Saheed, explained that the bill aims to entrench global best practices in public fund management and ensure intergenerational equity.
“The fund will serve as both a stabilisation and investment mechanism — cushioning economic shocks while financing key infrastructure projects, especially in technology and innovation,” Saheed said.
He noted that the initiative aligns with Governor Babajide Sanwo-Olu’s T.H.E.M.E.S. agenda, further strengthening Lagos’ position as a model of sustainable urban development.
Saheed disclosed that the fund would be financed through a combination of the state’s Internally Generated Revenue, investment income, and an initial seed contribution, while assuring that all stakeholder submissions would be carefully reviewed before passage into law.
At the hearing, stakeholders described the initiative as forward-looking and strategic, highlighting its potential to accelerate Lagos’ development trajectory as Nigeria’s fifth-largest economy.
Lagos State Commissioner for Finance, Mr Abayomi Oluyomi, emphasised the importance of the fund as a financial buffer against future economic shocks, referencing past disruptions caused by the Ebola and COVID-19 outbreaks.
“This fund will ensure we save for the rainy day,” he said. “Our population continues to grow, and so does the demand for jobs and infrastructure. This is a vital step to protect our economy.”
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Oluyomi, who described Lagos as the fastest-growing tech hub in the world, stated that the fund would support continued investment in innovation, adding that if managed efficiently, its balance sheet could surpass that of the state itself.
He disclosed that about ₦30–₦40 billion — representing 0.5 per cent of the current state budget — would serve as seed capital, while 3.2 per cent of the state’s monthly IGR would be contributed to the fund.
Representing the Institute of Chartered Accountants of Nigeria,ICAN, Malam Haruna Yahaya, speaking on behalf of Dr Yemi Sanni, commended the initiative, describing it as a crucial vehicle for wealth creation.
He urged that the fund comply with both national and international accounting standards, specifically the International Public Sector Accounting Standards.
Sanni also recommended several financial safeguards, including reducing the auditor’s tenure from ten years to five, enforcing auditor rotation, and mandating that only firms registered with the Financial Reporting Council handle audits.
He further proposed that one board member be a fellow of ICAN with expertise in public finance, and that the audit committee be chaired by a qualified accountant.
Sanni advised that withdrawals from the fund should be capped, with Assembly approval required for any exceeding 25 per cent of the total balance, and budget deficits not surpassing 20 per cent of annual revenue.
He also called for clarification on the fund’s relationship with the Securities and Exchange Commission and the Central Bank of Nigeria.
Special Adviser to the CEO of the Lagos Internal Revenue Service, Mr Tokunbo Akande, lauded the Assembly for engaging stakeholders in the legislative process. He, however, pointed out that the bill lacked clear provisions for financing the agency’s administrative and operationa activities.
Akande proposed the establishment of an official website to publish the fund’s financial reports and updates for transparency.
Deputy Majority Leader, Mr Adedamola Kasunmu, appreciated the contributions from all participants, affirming Lagos’ commitment to fiscal sustainability and resilience.
“No matter the situation, Lagos will survive,” he said. “This proposed law is about preparing Lagos for the future and securing prosperity for generations to come.”
NAN
