Babajide Sanwo-Olu, Governor of the State, made the announcement while addressing EndSARS protesters at the State House of Assembly gate, Alausa Ikeja.
The compensation fund will be supervised by the Civil Society Organization CSO, and appointed by members of the public.
The Governor called on the protesters to send in list of people that have been victimised by SARS in Lagos.
He stated that Government will identify their families and ensure they are compensated.
Sanwo-Olu noted that he fully identified with the EndSars protests, knowing full well that lots of lives have been lost and that he feel the pain of millions of Nigerians.
He said in fulfilling one of the requests made by protesters, all those arrested had been released without any condition and he would speak with the president, Muhammadu Buhari and convey the requests of protesters.