Oyo establishes Sovereign Wealth Fund to boost economy

From Taiwo Oluwadare, Ibadan

The Oyo State Executive Council has approved the establishment of a Sovereign Wealth Fund aimed at revitalizing the State’s economy.

This decision was made during the Executive Council meeting held yesterday. In a statement signed by the Commissioner for Information and Orientation, Prince Dotun Oyelade, the Council emphasized the fund’s potential to enhance the State’s economic well-being both in the short and long term.

The primary objective of the Sovereign Wealth Fund is to generate wealth through diversification and prudent investment, transforming financial assets into tangible benefits for the people. The Commissioner noted that the initiative would promote economic stability, long-term wealth creation, infrastructural development, and revenue diversification.

Governor Seyi Makinde affirmed that Oyo State has the economic capacity to generate up to $250 million from the project within the next few years.

Additionally, the Council approved Oyo State’s increased involvement in the Nigeria Governors’ Forum (NGF), particularly in economic cooperation. As part of this, Oyo State will collaborate with other State Governors and financial consultants to recover and reconcile excess crude account and petroleum profit tax revenues from 2009 to 2015.

The Council also approved the State’s participation in an NGF initiative to engage consultants who will liaise with Federal agencies and development partners to ensure transparency and equitable distribution of funds to States and Local Governments.

In further economic measures, the Council sanctioned urgent intervention in the agricultural sector, particularly at the Fashola Agribusiness Industrial Hub and farm estate projects in Eruwa and Akufo. Notably, the Fasola hub has attracted significant local and international interest.

To improve access to potable water and reduce wastage, the Council approved the bulk purchase of pipes and repair materials worth N359,047,500 for the Water Corporation of Oyo State (WCOS). This will facilitate repairs of pipe leakages and replacement of aging pipelines, ensuring consistent water supply.

Furthermore, the Council approved a bill to establish the New Towns and Cities Development Authority (NTCDA). Given the State’s rapid infrastructural development and the influx of residents and investors, this new parastatal will facilitate the creation of new housing and industrial layouts, attract businesses and industries, alleviate urban congestion, and develop modern cities driven by technology and innovation.