Speaker of the House, Mr Mudashiru Obasa, confirmed this during a public hearing organised by the Assembly’s Committee on Finance on Wednesday in Lagos.
The bill is 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.’
Obasa, represented by Mr Solomon Bonu (Badagry I), described the proposal as visionary, saying it would safeguard the state’s future and secure the prosperity of generations yet unborn.
“It is a statement of fiscal foresight and responsible governance. It will create a structure and funds for saving and investing for future purposes,” he said.
He added that the initiative would transform state revenue into long-term wealth through technology and innovation, ensuring Lagos remains Nigeria’s economic heartbeat.
Obasa said leadership was about preserving resources for tomorrow rather than consuming everything today, urging stakeholders to contribute meaningfully to shaping the proposed law.
Chairman of the House Committee on Finance, Mr Femi Saheed, said the bill would institutionalise global best practices in public fund management and promote sustainable investment in the state’s future.
“The Assembly recognises the need to safeguard today’s resources for tomorrow’s citizens. We rely on your expert input to refine this bill,” he said.
Saheed noted that the fund would act as both a stabilisation and investment mechanism, cushioning economic shocks and financing key infrastructure, especially in technology and innovation.
“This initiative aligns with the Governor’s T.H.E.M.E.S. agenda. It will strengthen Lagos’ reputation as a model for sustainable development,” he added.
He said the fund would be financed through the state’s Internally Generated Revenue, investment income, and an initial seed contribution.
All stakeholder submissions, he added, would be thoroughly reviewed before the bill’s passage into law.
Stakeholders at the hearing described the move as bold and forward-looking, saying it would accelerate development in Lagos, Nigeria’s fifth-largest economy.
Commissioner for Finance, Mr Abayomi Oluyomi, said the proposed fund was vital for protecting the state’s economy from future shocks and emergencies.
Recalling the fiscal disruptions caused by Ebola and COVID-19, he stressed the importance of having a stabilisation mechanism for the state.
“This fund will ensure we save for the rainy day. The demand for jobs and infrastructure continues to grow with our population,” Oluyomi said.
He described Lagos as “the fastest-growing tech hub in the world,” adding that the fund would support continued investment in technology and innovation.
“If well managed, the fund’s balance sheet could surpass that of the state itself. It will be a lasting legacy for Lagosians,” he said.
Oluyomi revealed that 0.5 per cent of the current state budget, about ₦30–₦40 billion, would serve as seed capital, while 3.2 per cent of monthly IGR would be contributed.
Representing the Institute of Chartered Accountants of Nigeria (ICAN), Malam Haruna Yahaya, on behalf of Dr Yemi Sanni, commended the state for creating a vehicle for wealth generation.
He urged that the fund comply with national and international accounting standards and adopt International Public Sector Accounting Standards (IPSAS).
Sanni also proposed that audit tenure be reduced from ten years to five, in line with global best practices.
He recommended a joint audit for the first three years, auditor rotation, and that only firms registered with the Financial Reporting Council be engaged.
“One board member should be a fellow of ICAN with expertise in public finance. The audit committee chair should also be a qualified accountant,” he said.
He added that the bill should specify withdrawal percentages and suggested that budget deficits not exceed 20 per cent of annual revenue.
Sanni further advised that Assembly approval be required for any withdrawal exceeding 25 per cent of the fund’s balance.
He urged drafters to clarify 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, praised the Assembly for engaging stakeholders.
Akande noted that there was no clear provision for funding the agency’s administrative and operational activities in the bill.
He also proposed that the fund maintain an official website for publishing financial accounts and updates.
Deputy Majority Leader, Mr Adedamola Kasunmu, appreciated all contributors, saying Lagos remained a cosmopolitan state committed to financial sustainability.
“We recognise the Commissioner for Finance and appreciate ICAN’s review. No matter the situation, Lagos will survive,” he said.
Kasunmu added that the proposed law would prepare Lagos for future economic contingencies and secure prosperity for generations to come.
