Lagos State Issues Record N244.82 Billion Bond to Boost Infrastructure and Green Development
Lagos State has made history with its latest bond issuance, raising N244.82 billion to fund major infrastructure and green development projects. The announcement marks the largest bond ever issued by a Nigerian subnational government, highlighting Lagos’ growing reputation as a leader in innovative financing. Analysts say the move opens new opportunities for other states to access capital markets and attract investors.
The issuance includes a N14.815 billion Green Bond for 2030, which received nearly double the bids at N29.29 billion, and a N230 billion conventional bond for 2035. These bonds will finance critical sectors, including transportation, housing, healthcare, environmental sustainability, and education. Governor Babajide Sanwo-Olu emphasized that this is not just a financial transaction but a commitment to sustainable and inclusive growth for the city’s nearly 25 million residents.
Lagos has a track record of pioneering innovative financing, including the first subnational Sukuk—a Sharia-compliant ethical instrument—which funded major road projects. The funds from the latest bonds will support initiatives such as a new 280-bed hospital, solar power installations in schools, and agro-processing hubs to improve food security, reinforcing the state’s dedication to climate-resilient development.
Investor confidence was overwhelmingly positive, with subscriptions exceeding the initial offer size, prompting the state to exercise a green shoe option to close at the full N230 billion. International observers, including the UK Foreign Commonwealth Development Office, praised Lagos as a model for other subnational governments seeking to mobilize capital for sustainable growth. Financial experts highlighted Lagos’ fiscal discipline, strong governance, and ability to deliver measurable development outcomes.
The issuance also earned Lagos international recognition, coinciding with Governor Sanwo-Olu being named TIME Africa Impact Personality of the Year. Ratings agencies affirmed the bonds’ high quality, citing strong repayment capacity, low credit risk, and sound financial management. The state’s Finance Commissioner, Abayomi Oluyomi, expressed optimism that future bond issuances could reach N500 billion, reinforcing Lagos’ position as a trailblazer in subnational financing and sustainable urban development.
source: dailytrust