The Lagos State government has said its proposed Lagos State Wealth Fund will drive development projects, strengthen fiscal resilience, and improve investment opportunities in the state, according to an official statement.
State wealth funds are investment vehicles used by governments to mobilise capital, generate long-term returns and support infrastructure and economic development.
Lagos, Nigeria’s commercial hub, has consistently sought diversified sources of revenue beyond statutory allocations to support urban development and social services.
The proposal for a Lagos State Wealth Fund follows policy discussions about boosting internally generated revenue, managing public assets, and financing large-scale projects without over-reliance on recurrent budgetary expenditures.
Lagos State Commissioner for Finance, Mr. Rabiu Olowo, said the wealth fund will catalyse capital inflows and support sustainable development.
He spoke at a summit on the Global South and Africa’s Development, where he outlined the government’s vision for the fund.
Olowo said the Lagos State Wealth Fund is expected to create a platform for public and private sector participation in financing infrastructure, economic projects, and strategic investments, which he said will complement traditional revenue sources.
According to Olowo, the wealth fund will be structured to attract local and international capital, deepen financial markets and support macroeconomic stability in the state’s finances.
He said the initiative is part of a broader strategy to buttress fiscal resilience in an environment of fluctuating revenue streams.
The finance commissioner said that by nurturing long-term investment vehicles, Lagos State will align with global best practices that leverage sovereign or subnational wealth funds to sustain development outcomes and provide buffers against economic shocks.
If implemented, the Lagos State Wealth Fund could broaden the state’s revenue base by creating avenues for investment that generate returns over time.
It may also support financing large infrastructure and social projects without placing undue pressure on annual budgets.
Public and private sector participation in the fund could help deepen capital markets in Nigeria, bringing new sources of liquidity and investor interest to state-level projects.
Fiscal resilience measures such as wealth funds are used in other jurisdictions to stabilise finances during economic downturns and to ensure continuity of strategic development programmes when conventional revenues fluctuate.
