Lagos to Channel N244.82bn Bond Proceeds into Critical Infrastructure Development
Lagos State has announced plans to invest N244.82 billion raised from its latest bond issuance into critical infrastructure across the state. The funds, part of the Series III Green Bond and Series IV Conventional Bond under the N1 trillion Debt and Hybrid Instruments Programme, will target sectors including transportation, housing, environmental sustainability, healthcare, and education, aiming to fuel inclusive and sustainable development.
Governor Babajide Sanwo-Olu expressed appreciation to investors for their trust and emphasized prudent management of public resources. Speaking at the signing ceremony in Lagos, he highlighted that the state’s bond journey began in 2020 with an initial issuance of N100–N110 billion and has steadily grown in scale. “Each subsequent bond has surpassed its predecessor, and today, we embark on another groundbreaking opportunity,” Sanwo-Olu said.
Lagos made history by issuing Nigeria’s first subnational Green Bond, securing N14.815 billion. This initiative underscores the state’s commitment to environmental responsibility, aligned with its THEMES+ Agenda, while supporting long-term sustainability goals. The latest issuance, now the largest in Lagos State’s history, demonstrates strong governance, fiscal discipline, and investor confidence in the state’s economic vision.
Commissioner of Finance Abayomi Oluyomi noted that the bond’s proceeds will strategically fund projects aligned with the UN Sustainable Development Goals (SDGs). The Series IV Conventional Bond initially targeted N200 billion but successfully raised N230 billion, reflecting overwhelming investor interest despite regulatory caps. This milestone positions Lagos to continue attracting robust market engagement for future issuances.
Bolaji Balogun, CEO of lead issuer Chapel Hill Denham, highlighted Lagos as a model for transparency and innovation in subnational bond issuance. He noted that the state is not only leading Nigeria but Africa, with the Green Bond marking a historic first. The funds will drive critical infrastructure projects, enhancing transportation networks, housing, healthcare, education, and environmental initiatives, reinforcing Lagos’ trajectory toward sustainable growth and long-term prosperity.
source: Leadership