Ibile Holdings, an investment company owned by the Lagos state government will soon be a reality.
The bill which will setup Ibile Holdings as a legal entity has reached its second reading on the floor of the Lagos State House of Assembly has reached its second reading.
Ibile Holdings was formed from Ikorodu, Badagry, Ikeja, Lagos Island and Epe. These are the major cornerstone towns that make up the state and its indigenous population.
Until the bill is finally passed into law, the modus operandi for the company will be sketchy.
The are possibilities that Ibile Holdings will be floated as a public limited liability company and to be quoted on the Nigerian Stock Exchange. As there are listing procedures, the probability of an initial public offering.
However, the state government hinted on some areas the company will focus on. At the investor presentation for the NGN60 billion bond. The state is looking at investing largely in transportation, road and social infrastructure across the states.
Some quarters suggest that Ibile Holdings might also be used by the Lagos state government to take equity positions in companies with high growth potential.
Also, the advantage of floating such a company would open up the state for foreign investors who might want to see more transparency in the way and manner their investment is utilized and a proper corporate governance.
There are concerns that Ibile Holdings will require expert support to ensure the company does not fail along the line. Honourable Mudashiru Obasa, Speaker of the State House of Assembly said the House will seek such parties to deliberate on the bill so as to make sure the company is set up on a strong foundation.
Ibile Holdings will not be the first attempt by a state and groups of states to set up an investment company. Oodua Group of Companies was established by the former Western Region. The company faltered along the line with less relevance across all its investments.