The Lagos State Government has described the proposed Lagos State Wealth Fund (LSWF) as a blueprint for sustainable investment, fiscal stability and long-term wealth creation for the state, as well as a strategic investment vehicle to safeguard Lagos State’s future and secure the prosperity of generations yet unborn.
Speaking to journalists during a Lagos State Wealth Fund (LSWF) Bill Harmonisation Session, themed “Designing a Coherent and Bankable Wealth Fund Architecture for Lagos”, held at the Four Point by Sheraton Hotel, Oniru, Lagos, the Commissioner for Finance, Mr. Abayomi Oluyomi, described the initiative as part of efforts to secure Lagos’ long-term financial stability and development.
Oluyomi said the harmonisation session organised by the Ministry of Finance in conjunction with the Lagos House Assembly was designed to align all comments and recommendations into a unified framework that would strengthen the bill before final legislative action.
Oluyomi, who commended the economic reform drive of Governor Babajide Sanwo-Olu, explained the model draws inspiration from the sovereign investment framework of the Nigerian Sovereign Investment Authority, which manages Nigeria’s Sovereign Wealth Fund established in 2011 and has recorded steady profitability over the years.
He noted the Lagos State Wealth Fund Bill outlines four major investment windows that will help to boost infrastructure financing, enhance economic diversification, strengthen fiscal buffers during downturns and build long-term savings for future generations.
He said: “The idea behind the Lagos State Wealth Fund, basically, is to promote a savings culture and provide for the future generations. The Lagos State Wealth Fund, by its design, will catalyse capital globally as additional funds for investment purposes
“Specific sub funds include Technology and Innovation Fund. Lagos State, described as the largest tech hub in Africa will benefit tremendously from the Fund. It will generate employment opportunities for its teeming population and attract strategic attention globally.
“Today, many Nigerian youths are engaged in AI, blockchain technology and innovation in the space. This fund is an opportunity to scale up and change the landscape permanently.
“There will also be an Infrastructure Fund directed at financing gigantic infrastructure such as the fourth mainland bridge, the Lagos International airport and for establishing Lagos airline. These are economic agents that promote growth and development.
“The Stabilisation Fund primarily is to provide buffer and stability to the fiscal operations of the government during emergencies such as the COVID pandemic. The bill is very intentional with provisions for financing any budget shortfall of over 50 per cent. Drawdown from the stabilization fund shall provide augmentation for such imbalances
“When the Lagos State Wealth Fund Bill is eventually passed into law, it will take Lagos State to the next level. The Lagos State Wealth Fund will also generate revenue to the government by way of dividends.
“Lagos State as the financial, economic, and commercial capital in the sub-Saharan Africa is desirous of scaling up on its capacity and capability to become globally recognized. Lagos state focus is no longer predominantly domestic but has upscale and upgraded to a regional and global player.”
Also speaking, the Speaker of the Lagos State House of Assembly, Rt. Hon. Mudashiru Obasa, represented by the Chairman of the House Committee on Finance, Hon. Femi Saheed, said the Lagos State Wealth Fund will attract investments and build infrastructure, technology and innovation initiatives.
“The Lagos State Wealth Fund is going to serve as a stabilisation fund in case of emergency. The fund could also be used to finance a budget deficit. It is just a system of reducing our risk and creating wealth that will further generate returns for Lagos State,” he said.
The Special Adviser to the Governor on Corporate and Finance Strategy, Mr. Akintayo Sanwo-Olu, said: “The Lagos State Wealth Fund represents a bold and visionary step in sub-national financial innovation. By institutionalising long-term savings and channelling capital into strategic infrastructure and economic enablers, the Fund strengthens Lagos’s fiscal resilience while enhancing investor confidence.
“It is not about short-term gains – it is about building sustainable prosperity for future generations, creating jobs, improving public services, and attracting domestic and international capital.
“As global cities compete for talent and investment, Lagos is positioning itself not just as Nigeria’s economic hub, but as a financially disciplined, forward-looking metropolis with a clear roadmap for inclusive growth.”
