Lagos Set to Create Wealth Fund for Infrastructure Development and Job Creation

Lagos State is set to establish a Wealth Fund aimed at driving infrastructure development, boosting technological innovation, and creating jobs for its growing population.

The initiative is contained in a 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 of Its Indigenes and Residents, and for Connected Purposes.”

The bill was the subject of a public hearing organised by the Lagos State House of Assembly Committee on Finance at the Lateef Jakande Auditorium, Assembly Complex, Alausa, Ikeja, on Wednesday.

Stakeholders in attendance described the proposal as a bold step that would further accelerate development in Lagos; widely regarded as the fifth-largest economy.

Speaking during the hearing, the Chairman of the House Committee on Finance, Hon. Femi Saheed, said the bill seeks to institutionalise best practices in public fund management while ensuring that Lagos continues to invest in its future.

“The House of Assembly recognises the need to safeguard the resources of today for tomorrow’s citizens. We count on your expert submissions and constructive criticisms to refine this bill into a robust instrument,” he said.

Saheed noted that the Wealth Fund would serve as both a stabilisation and investment fund, helping the state manage economic fluctuations and fund key infrastructure projects, particularly in technology and innovation.

“This initiative aligns with the Governor’s T.H.E.M.E.S. agenda. It will drive investment in technology, innovation, and public infrastructure, ensuring Lagos remains a model of sustainable development,” he added.

He explained that the Fund would be financed through the state’s Internally Generated Revenue (IGR), investment income, and an initial seed fund, adding that all stakeholder submissions would be carefully reviewed before the bill’s passage into law.

In his remarks, the Commissioner for Finance, Hon. Abayomi Oluyomi, said the proposed Wealth Fund is crucial to safeguarding the state’s economic future.

Recalling the fiscal disruptions caused by the Ebola outbreak and the COVID-19 pandemic, Oluyomi emphasised the importance of having a stabilisation mechanism to protect Lagos during emergencies.

“This fund will ensure we save for the rainy day. With Lagos’ rapidly growing population, the demand for jobs and infrastructure keeps increasing. The fund is about savings and long-term investment to secure the future,” he said.

According to him, Lagos is “the fastest-growing tech hub in the world;” the state’s own Silicon Valley; and the Wealth Fund will support continued investment in that sector.

“If well managed, the fund’s balance sheet could eventually surpass that of the state itself. It’s an Executive Bill that will become a lasting legacy for Lagosians,” he stated.

Oluyomi further revealed that 0.5% of the current state budget (about ?30–?40 billion) would serve as the initial seed capital, while 3.2% of the state’s monthly IGR would be contributed to the fund

Earlier in his keynote address, the Speaker of the Assembly, Rt. Hon. Mudashiru Obasa, who was represented by Solomon Bonu, said that it’s a visionary proposal that would safeguard the state and secure the prosperity of generations yet unborn.

“It’s a statement of fiscal foresight and responsible governance. It establishes a structure and funds that will enable the state to save and invest for future purposes.

“It will be done through technology innovation and future savings and it will transform our revenue into a long term wealth and ensure that Lagos remains the heartbeat of Nigeria.

“It represents our shared belief that leadership is not about what we consume today, but what we preserve for tomorrow. We value your input and your contributions today will help us shape the laws better,” he said.

In his contributions, Dr. Yemi Sanni, who represented the President of the Institute of Chartered Accountants of Nigeria (ICAN), Malam Haruna Umar Yahaya, said that as a body committed to promoting accountability, “we commend the state for creating a body for wealth generation.”

He however said that the fund should ensure compliance with national and international standards.

“We mandate the adoption of international public status accounting standards and we recommend segment reporting.

“Also, 10- year audit tenure is too long, it should be reviewed to five years to align with global best practices.

“We mandate joint audit for the first three years to ensure a robust oversight. We recommend rotation of auditors. The auditors must be firms registered with Financial Reporting Council and not individuals.

“One of the members of the board should be a fellow of ICAN with expertise in public finance. The audit committee chair must be a qualified accountant and preferably a member of ICAN.

“Section 27 talks about withdrawal and the percentages are blank, we believe this must be an oversight. We recommend budget deficit to be 15 to 20 % of annual revenue, and we mandate assembly approval of 25 % of more withdrawal,” he said.

Sanni suggested that the legislative drafters should fill the blank places, and that they should clarify the agency’s relationship with SEC and CBN.

Special Adviser to the CEO of Lagos Internal Revenue Service (LIRS), Mr Tokunbo Akande, also commended the assembly for the stakeholders meeting, while nothing that there is no provision for funding administrative and operational activities of the agency.

He also suggested that the fund should have an official website to publish their account.

Responding to the contributions, Hon. Adedamola Richard Kasunmu, the Deputy Majority Leader of the House, said that Lagos State remains cosmopolitan, while he appreciated those who brought memoranda and those that spoke.

“We recognise the comment of the Commissioner for Finance. Lagos State is grateful for your service. We appreciate ICAN for the overview and comments. No matter the situation we are in, we will still survive. We are prepared for the rainy days. We are preparing for the economic contingency of the future with the proposed law,” he said.