The Lagos State Government on Tuesday said it is dedicated to setting up a Sovereign Wealth Fund as a strategic investment vehicle that will safeguard the state’s future and secure the prosperity of unborn generations.
The proposed fund is expected to establish a coherent and bankable architecture to drive infrastructure development, economic stabilisation, long-term savings and strategic growth. According to the government, the initiative is designed to secure Lagos’ financial future through the creation of dedicated investment windows that will protect public resources, generate returns and reduce fiscal shocks.
The Commissioner for Finance, Mr. Abayomi Oluyomi, disclosed the plan during the Lagos State Wealth Fund (LSWF) Bill Harmonisation Session themed “Designing a Coherent and Bankable Wealth Fund Architecture for Lagos,” held at Four Point by Sheraton Hotel, Oniru, Lagos.
The session brought together members of the Lagos State Executive Council and the Lagos State House of Assembly, as well as top officials and stakeholders from both the public and private sectors. The aim was to fine-tune provisions of the LSWF Bill ahead of its consideration by the Lagos State House of Assembly.
Speaking during the one-day retreat organised by the Ministry of Finance to harmonise stakeholders’ input on the proposed Lagos State Wealth Fund Bill, Oluyomi said the bill is aimed at designing a coherent and bankable wealth fund architecture for the state.
He explained that the retreat followed the public hearing held on the Lagos State Wealth Fund Bill on November 12, 2025, which generated extensive feedback from stakeholders. He noted that the harmonisation session was designed to harmonise all comments and recommendations into a unified framework that would strengthen the bill before final legislative action.
Oluyomi commended the economic reform drive of the Lagos State Governor, Mr. Babajide Sanwo-Olu, describing the wealth fund initiative as part of efforts to secure Lagos’ long-term financial stability and development.
He added that the proposed 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.
According to him, the Lagos State Wealth Fund Bill outlines four major investment windows that are expected to boost infrastructure financing, enhance economic diversification, strengthen fiscal buffers during economic downturns and build long-term savings for future generations.
Oluyomi emphasised the need for private sector involvement in shaping the framework, describing it as central to Lagos’ economic strength. “The private sector is the engine that drives economic growth, particularly in an economy as large as Lagos. That is why their participation in this process is very critical,” he said.
Speaking at the event, the Speaker of the Lagos State House of Assembly, Rt. Hon. Mudashiru Obasa, who was represented by the Chairman of the House Committee on Finance, Hon. Femi Saheed, said the harmonisation session would assist in formulating a Lagos State Wealth Fund Law for future security.
He said the law would help attract investment and support infrastructure, technology and innovation initiatives across the state.
“We are here today to harmonise and get the best law that will set up the Lagos State Wealth Trust Fund. It is going to serve as a form of stabilisation fund in case of emergency, like during the times of COVID. This 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. The Governor of Lagos State will want to position and make a landmark fund that will boost Lagos State’s investments and make Lagos State reduce its risk,” he said.
Giving the Executive Summary of the Fund, the Lagos State Commissioner for Justice and Attorney General, Mr. Lawal Pedro (SAN), described the initiative as a legacy achievement for Lagos and Africa’s first subnational wealth fund initiative.
Pedro highlighted the broader economic gains of the proposal, noting that the fund would promote revenue maximisation, prudent asset management and economic diversification.
He said the fund comes with several benefits, including revenue maximisation and economic diversification, adding that the state needs a strategic approach to managing its commercial assets to meet its growing obligations.
Pedro further described the proposal as a legacy project capable of positioning Lagos as Africa’s first sub-national government to establish a structured wealth fund framework, strengthening its reputation as a leading economic hub.
The Special Adviser to the Governor on Corporate and Finance Strategy, Mr. Akintayo Sanwo-Olu, also described the initiative as a major step in sub-national financial innovation.
“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,” he said.
He added, “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.”
Some stakeholders at the retreat also said Lagos State needs a strategic approach to manage its commercial assets to meet its growing obligations. They expressed confidence that the refined structure would position Lagos as a leading model for sub-national wealth fund management in Nigeria.
Participants expressed optimism that once passed into law, the Lagos State Wealth Fund would serve as a sustainable financial pillar, attracting investments, safeguarding public wealth and ensuring long-term development for Africa’s largest sub-national economy.
The Lagos State Wealth Fund Bill Harmonisation Session featured detailed clause-by-clause reviews of the bill, with extended deliberations aimed at producing a harmonised and investor-friendly wealth fund framework that aligns with global best practices while addressing the unique needs of Lagos State.
