The Lagos State House of Assembly is advancing a landmark legislation, the Lagos State Wealth Fund Bill 2025, designed to secure the state’s financial stability and prosperity for future generations.

The executive-sponsored bill, which aims to establish a dedicated fund for long-term investment and savings, was the focus of a public hearing on Wednesday that drew broad support from stakeholders, who praised its visionary approach to economic sustainability.

The proposed law seeks to create a fund that will receive, manage, and invest in a diversified portfolio of medium- and long-term assets for the collective benefit of Lagos State and its residents.

Declaring the hearing open, Speaker of the House, Dr. Mudashiru Obasa, represented by Solomon Bonu, described the bill as a vital step toward safeguarding Lagos’s economic future.

Obasa said the law would provide a structural framework for the state to pursue strategic investments, transforming current revenues into enduring wealth while promoting transparency and accountability.

“Leadership is about what is built and preserved for tomorrow,” he said. “The bill’s intent is to create wealth guided by principles of openness and trustworthiness.”

Chairman of the House Committee on Finance, Hon. Femi Saheed, explained that the fund would serve as a financial stabilisation mechanism, especially during periods of economic stress.

He added that the initiative aligns with global best practices on sovereign wealth management as adopted by international institutions.

According to Saheed, the fund would also finance critical infrastructure and support key growth sectors such as agriculture, power, and information technology — ensuring sustainable economic expansion.

Lagos State Commissioner for Finance, Mr. Abayomi Oluyomi, described the initiative as “a momentous step,” commending the collaboration between the executive and legislative arms.

He noted that Lagos, as one of Africa’s largest economies, must institutionalise measures to secure its fiscal future, especially in light of lessons learned from the impact of the recent pandemic on state finances.

Oluyomi revealed that the bill is projected to save about ₦30 billion annually, roughly 3.2 percent of the state’s annual budget, which would be channelled into the fund to support future investments in technology and job creation.

“Lagos State is one of the fastest-growing economies in the world,” he said. “The establishment of a wealth fund will attract foreign investment and strengthen our ability to plan for the needs of our rapidly growing population.”

Representatives of the Institute of Chartered Accountants of Nigeria (ICAN), while commending the initiative, made several recommendations to enhance the bill’s governance and transparency framework.

ICAN President, Haruna Yahya — represented by Dr. Yemi Sanni — proposed amendments focused on audit tenure, financial reporting standards, fund withdrawals, and board governance.

The institute recommended that the proposed 10-year external audit tenure be reduced to a maximum of five years, with mandatory rotation of audit partners. It also called for clarity on the specific IFRS standard to be applied and the inclusion of mandatory segment reporting for transparency.

Additionally, ICAN advised that the bill should clearly define withdrawal limits, outline what constitutes a budget deficit, and provide for an independent actuarial review of the fund.

It further proposed that at least one board member of the fund should be a Fellow of ICAN to strengthen financial oversight, along with clearly stated qualification criteria for all board members.

If passed, the Lagos State Wealth Fund is expected to position the state as a model for prudent financial management, aligning with global standards for wealth preservation and sustainable economic growth.