LASG to Invest N244.82 Billion Bond Proceeds in Key Sectors for Sustainable Growth
Lagos State Government (LASG) has unveiled plans to strategically deploy the proceeds from its latest bond issuance, totaling N244.82 billion, into critical sectors that underpin the state’s growth and development. Governor Babajide Sanwo-Olu highlighted that the funds would target transportation, housing, healthcare, education, and environmental sustainability, aiming to foster inclusive and long-term economic progress.
Speaking at the Ministry of Finance and Debt Management Office bond-signing ceremony over the weekend, Governor Sanwo-Olu reaffirmed the administration’s commitment to responsible fiscal management. He expressed gratitude to investors, whose overwhelming support continues to validate Lagos State’s credibility in Nigeria’s capital markets and its adherence to transparency and strong governance practices.
The latest bond issuance forms part of the Lagos State N1 trillion Debt and Hybrid Instruments Programme, which now includes the country’s first subnational green bond. The green bond successfully raised N14.815 billion, with total bids reaching N29.29 billion. This achievement demonstrates investors’ recognition of Lagos’ environmental vision under the THEMES+ Agenda and reinforces the state’s dedication to building a resilient, sustainable, and prosperous city.
The Series Four conventional bond also exceeded expectations, initially targeting N200 billion but ultimately raising N230 billion, supported by bids totaling N310.06 billion. Governor Sanwo-Olu described this as the largest bond ever issued by a subnational government in Nigeria, highlighting Lagos State’s growing prominence and investor confidence in its governance structure and fiscal discipline.
Finance Commissioner Abayomi Oluyomi emphasized that project selection for the bond proceeds followed a rigorous process, aligned with the United Nations Sustainable Development Goals to ensure measurable environmental and social impact. Industry experts, including Chapel Hill Denham CEO Bolaji Balogun, noted that Lagos State stands out nationally for transparency and compliance, positioning it as a model for other states seeking to access the capital market successfully.
source: The Guardian