Stakeholders back Lagos Wealth Fund Bill, hail move to safeguard future development

Stakeholders in the financial sector have thrown their weight behind the proposed Lagos State Wealth Fund, describing it as a visionary step that will strengthen the state’s infrastructure base, boost technological innovation, and create more jobs for its growing population.

The support came during a public hearing on 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 of Its Indigenes and Residents, and for Connected Purposes.” The hearing was organised by the Lagos State House of Assembly Committee on Finance at the Assembly Complex, Alausa, Ikeja.

Chairman of the Committee, Hon. Femi Saheed, said the bill seeks to institutionalise global best practices in public fund management and ensure sustainable investment for future generations. He noted that the Wealth Fund would serve as both a stabilisation and investment mechanism to help the state manage economic fluctuations and finance major projects in line with Governor Babajide Sanwo-Olu’s T.H.E.M.E.S. agenda.

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

The Commissioner for Finance, Mr. Abayomi Oluyomi, described the fund as crucial for safeguarding Lagos’ economic future. He said the initiative will enable the state to save for emergencies and invest in long-term growth, revealing that 0.5% of the current budget (about ₦30–₦40 billion) will serve as the initial capital, while 3.2% of monthly IGR will be contributed regularly.

In his keynote address, the Speaker of the Assembly, Rt. Hon. Mudashiru Obasa, represented by Hon. Solomon Bonu, praised the bill as a mark of fiscal foresight and responsible governance. He said it would help the state transform present revenues into long-term wealth and secure prosperity for future generations.

Representing the Institute of Chartered Accountants of Nigeria (ICAN), Dr. Yemi Sanni commended the state for its forward-looking initiative but called for stronger financial governance. He recommended adopting international accounting standards, reducing the proposed audit tenure from ten to five years, and mandating joint audits for the first three years to ensure transparency.

Also speaking, Special Adviser to the Chairman, Lagos Internal Revenue Service (LIRS), Mr. Tokunbo Akande, applauded the Assembly for the consultative approach but pointed out the need for clear provisions on administrative funding. He suggested the creation of an official website to publish the Fund’s financial statements and enhance public transparency.