By Ireti Asemota.
The Lagos State Government is pushing forward with legislation to create a dedicated Wealth Fund, designed to fuel infrastructure projects, foster technological innovation, and generate employment opportunities amid the state’s rapid population growth.
This development was highlighted during a public hearing on Wednesday, organized by the Lagos State House of Assembly’s Committee on Finance. Speaker Mudashiru Obasa, represented by Mr. Solomon Bonu (Badagry I), praised the initiative as a forward-thinking measure to protect the state’s economic future and ensure lasting prosperity for upcoming generations.
The proposed legislation, formally 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,” aims to build a robust system for saving and investing state resources. Obasa emphasized that it represents “fiscal foresight and responsible governance,” converting current revenues into enduring wealth via tech-driven strategies and innovative investments—keeping Lagos as Nigeria’s economic powerhouse.
He stressed the essence of leadership: prioritizing tomorrow’s needs over today’s consumption, and called on participants to offer valuable insights to refine the bill.
Key Highlights from the Hearing
- Fund’s Dual Role: Committee Chairman Mr. Femi Saheed described the fund as a stabilizer against economic volatility and a catalyst for funding critical infrastructure, with a strong emphasis on technology and innovation. It aligns seamlessly with Governor Babajide Sanwo-Olu’s T.H.E.M.E.S. agenda, positioning Lagos as a benchmark for sustainable growth.
- Funding Sources: The fund will draw from the state’s Internally Generated Revenue (IGR), returns on investments, and an initial seed allocation of about ₦30–₦40 billion (0.5% of the current budget), plus 3.2% of monthly IGR.
- Stakeholder Perspectives:
- Finance Commissioner Abayomi Oluyomi underscored its necessity for buffering against crises like Ebola and COVID-19, dubbing Lagos the “world’s fastest-growing tech hub.” If managed effectively, he noted, the fund’s assets could eclipse the state’s overall balance sheet, creating a powerful legacy.
- Institute of Chartered Accountants of Nigeria (ICAN), via Malam Haruna Yahaya representing Dr. Yemi Sanni, applauded the wealth-building framework but recommended adherence to International Public Sector Accounting Standards (IPSAS), shorter audit cycles (five years max), mandatory auditor rotation, and ICAN-qualified board members. They also suggested caps on withdrawals (e.g., Assembly approval for over 25% of the balance) and clearer ties to regulators like the Securities and Exchange Commission and Central Bank of Nigeria.
- Lagos Internal Revenue Service (LIRS) representative Mr. Tokunbo Akande welcomed the stakeholder engagement but flagged the need for provisions covering the fund’s operational costs and a public website for transparent financial reporting.
Deputy Majority Leader Mr. Adedamola Kasunmu wrapped up by thanking contributors, affirming Lagos’s resilience and cosmopolitan spirit. “No matter the situation, Lagos will survive,” he said, adding that the law would fortify the state against future challenges and secure intergenerational wealth.
Stakeholders hailed the proposal as a daring, progressive step for Nigeria’s fifth-largest economy, poised to fast-track development. All inputs will be scrutinized before the bill advances to enactment.
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