The Lagos State Government has launched a N214.8 billion bond issuance under its N1 trillion Debt and Hybrid Instrument Issuance Programme to finance critical infrastructure projects and promote environmental sustainability.
The bond programme, comprising a N200 billion ten-year infrastructure bond and a N14.815 billion green bond, was formally presented at the Lagos Investor Forum attended by Governor Babajide Sanwo-Olu, state officials, and private sector stakeholders.
Governor Sanwo-Olu urged investors to support the bond issuance, highlighting the state’s consistent track record of prudent financial management and continuity across successive administrations.
“There are enormous opportunities in Lagos for sustainable growth. With more funding, we can do a lot more. Inflation and rising costs will always be a factor, but your investment today secures tomorrow’s progress,” Sanwo-Olu said.
The governor reiterated Lagos’ capacity to deliver on infrastructure projects that address the needs of its rapidly growing population, assuring investors of the safety and credibility of their funds.
Commissioner for Finance, Abayomi Oluyomi, emphasised that the issuance reflects the state’s fiscal responsibility and shift toward impact-driven investments.
He noted that the infrastructure bond will fund 24 projects across nine ministries and agencies, including housing, health, environment, transportation, agriculture, and technology.
Oluyomi explained that the green bond represents a landmark for Lagos as the first subnational government in Nigeria to issue such an instrument. Proceeds will be channelled into renewable energy, climate change adaptation, and sustainable water and waste management projects.
“The financial world is shifting towards impact-driven investments, and Lagos cannot afford to be left behind. Investors want to see social impact, environmental sustainability, and long-term development. That is why social, diaspora, and environmental impact bonds must now be front and centre in our strategy,” he said.
The Chief Executive Officer of Chapel Hill Denham Advisory Services, Bolaji Balogun, commended Lagos for its leadership in the Nigerian capital market.
He confirmed that the bonds would be launched this week, priced within five days, and proceeds delivered to the state within three weeks.
“Lagos is first among subnationals in Africa with the confidence to consistently access capital markets to raise large-scale funding for development,” Balogun stated.
Lagos has maintained a debt-service-to-revenue ratio of 19.2 percent, supported by a local credit rating of A1+ and a reaffirmed AAA rating from Fitch Ratings. These strong ratings, according to Balogun, reflect the state’s fiscal discipline and credibility in the debt market.
The bond issuance aligns with the state’s N3.37 trillion 2025 Budget of Sustainability, which earmarked N398.66 billion for infrastructure. With this issuance, Lagos aims to expand housing, upgrade transport systems, strengthen health facilities, and implement climate-friendly projects.
Governor Sanwo-Olu concluded by calling on investors to partner with the state in building a resilient and sustainable economy.
He said that continued access to affordable capital remains vital to delivering large-scale projects capable of driving growth, creating jobs, and improving the quality of life for Lagosians.