The Lagos State government has announced that it will channel the proceeds from its recent bond issuance, totaling N244.82 billion, into critical infrastructure and development projects. The funds are earmarked for key sectors including transportation, housing, healthcare, education, and environmental sustainability, aimed at fostering inclusive and sustainable growth across the state.
The announcement was made at a bond signing ceremony held by the Lagos State Ministry of Finance/DMO in Lagos, attended by government officials, financial institutions, and investors.
Governor Babajide Sanwo-Olu expressed gratitude to investors for their confidence in Lagos, pledging prudent management of public resources. “We are here to finalise the documentation for the issuance of our Green Bond and Conventional Bond as part of the Lagos State N1 trillion Debt and Hybrid Instruments Issuance Programme,” he said.
Since taking office, Sanwo-Olu highlighted that Lagos has been a pioneer in bond issuance. The state issued its first bond in 2020, valued at around N100–110 billion, marking a record at the time. Lagos also issued Nigeria’s first subnational Green Bond, raising N14.815 billion from a total of N29.29 billion in bids, underscoring investor interest and the state’s commitment to environmental responsibility under the THEMES+ Agenda.
The Series 4 Conventional Bond, initially targeting N200 billion, received N310.06 billion in bids, of which N304 billion was within the advised price range. The strong response allowed the state to exercise the Green issuance option, successfully raising N230 billion, making it the largest bond issuance in Lagos State’s history and for any subnational government in Nigeria.
Commissioner of Finance, Abayomi Oluyomi, noted that the projects financed through the bonds align with the United Nations Sustainable Development Goals (SDGs) and aim to produce measurable environmental benefits. He added that upcoming issuances could potentially reach N500 billion, reflecting sustained investor confidence.
Bolaji Balogun, CEO of Chapel Hill Denham and lead issuer, highlighted that Lagos stands out as a model for transparency, compliance, and innovation, unlike many other states facing challenges in bond issuance. He noted that Lagos is also the first subnational entity in Africa to issue a Green Bond, marking a significant milestone.
Representing the British High Commission, Temilola Akinrinade said the dual bond issuance demonstrates strong investor confidence in Lagos’ governance and the economic reforms led by Nigeria’s federal government.
The bond proceeds are expected to drive long-term development, support infrastructure projects, and enhance the state’s socio-economic landscape, reinforcing Lagos’ position as a financial and investment hub in Nigeria.
