•Fund to be expended on blue, red rail lines’ expansion to ease urban mobility, construction of Lekki-Epe airport road, housing, healthcare, others
Segun James and Kayode Tokede
The Lagos State Government yesterday announced plans to utilise proceeds from its recent bond issuance, totaling N244.8 billion, in critical infrastructure development.
The state achieved a historic milestone in Nigeria’s capital markets with the successful signing and completion of a dual bond issuance, comprising a N14.815 billion Series 3 Green Bond and a N230 billion Series 4 Conventional Bond, under its N1 trillion Debt and Hybrid Instruments Issuance Programme.
The combined transaction represented the largest bond issuance ever by any State government in Nigeria and the first subnational Green Bond in the country’s history.
The funds would be invested in key sectors such as transportation, housing, environmental sustainability, healthcare, and education, aiming to drive sustainable and inclusive growth in the state.
Precisely, proceeds from the debt instrument are to be expended on expansion of the Blue and Red Rail Lines to ease urban mobility; construction of the Lekki-Epe Airport Road to boost connectivity; development of affordable housing schemes for growing population; upgrading healthcare facilities, including a 280-bed hospital; installation of alternative solar power across schools in Lagos and establishing agro-produce hubs to strengthen food security.
This was disclosed at the Lagos State Government Ministry of Finance/Debt Management Office (DMO) bond signing ceremony held in Lagos, which was attended by government officials, financial institutions, and investors.
Lagos State Governor, Babajide Sanwo-Olu expressed gratitude to investors for their confidence in Lagos State and pledged to ensure prudent management of public resources.
An elated Sanwo-Olu, said his administration was building a State that is not only prosperous but also environmentally secure for future generations.
The Governor added his administration would be leaving behind a sustainable infrastructural masterpiece for today’s Lagos and generations coming behind.
He said, “This is not just a financial transaction, but a global statement of confidence in Lagos’ future and a testament to our shared commitment to sustainable development.
“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.
“Since our administration took office, our journey in bond issuance has been pioneering. The first bond we issued in 2020, valued at approximately N100 to N110 billion, marked a record at the time. Each subsequent bond has surpassed its predecessor, and today we embark on another groundbreaking opportunity.”
Sanwo-Olu stated further that, “Lagos State has issued Nigeria’s first subnational Green Bond, securing N14.815 billion.
“The enthusiastic response, with total bids reaching N29.29 billion to N27.79 billion of which were within the advised price guidance, affirms our vision for environmental responsibility aligned with the second pillar of our THEMES+ Agenda and our long-term goal of constructing a Lagos that is prosperous, resilient, and environmentally secure for future generations.”
He added that, “Our Series 4 Conventional Bond aimed for N200 billion, yet at the conclusion of the book build, we received an impressive N310.06 billion in bids, with N304 billion within the advised range.
“This extraordinary investor confidence prompted us to exercise the Green issuance option, allowing us to successfully raise N230 billion.
“This issuance now stands as the largest bond issuance in Lagos State’s history and indeed for any subnational government in Nigeria.
“It serves as a testament to the vision, governance, and fiscal discipline present within Lagos State. We deeply value this trust and are wholly committed to honoring it.”
He pointed out that the proceeds from this issuance will be strategically invested in vital infrastructure areas: transportation, housing, environmental sustainability, healthcare, education, and other strategic sectors that will empower Lagos to continue its trajectory of sustainable and inclusive growth.
Speaking earlier, Lagos State Commissioner of Finance, Mr. Abayomi Oluyomi, noted the comprehensive project selection process for the bond reflects, “our determination to finance initiatives that resonate with the United Nations Sustainable Development Goals (SDGs) and produce measurable environmental benefits.”
He explained that, “the impressive issuance of the Series 4 Conventional Bond. Initially targeting N200 billion, Lagos State successfully raised N230 billion.
“This oversubscription underscores strong investor confidence, despite regulatory thresholds that limited the ultimate size of the issuance.
“With a benchmark now approaching N300 billion and potentially reaching N500 billion in the future, we are optimistic that upcoming issuances will continue to attract robust market interest.”
He pointed out that these accomplishments reflect Lagos State’s commitment to responsibly accessing and utilising the domestic capital market while demonstrating the sustained confidence investors have in our economy, saying that the proceeds from these issuances will be directed toward vital infrastructure and social projects.
CEO, Chapel Hill Denham, the lead issuer, Mr. Bolaji Balogun, said that while many states in Nigeria face challenges in issuing bonds due to transparency and compliance issues, Lagos stands out as a beacon of best practices and innovation.
He noted that, “this N230 billion issuance marks not only the largest ever by a sub-national entity in Nigeria but also the most substantial issuance by any entity, aside from the national government. Furthermore, being the first sub-national in Africa to issue a Green Bond is a remarkable milestone.”
Temilola Akinrinade, representing the Deputy High Commissioner and Nigeria Finance & Investment Mobilisation Lead at the British High Commission, disclosed that Lagos successfully completed a significant dual bond issuance, demonstrating strong investor confidence in the state’s governance and economic reforms initiated by Nigeria’s president.
She said, “this issuance is a result of a long-term partnership between Lagos State and the UK Government, which includes support in developing a green bond framework.
“It comes at a crucial time as countries seek long-term climate-competitive financing, with both the Federal Government and Lagos leading the way in this transition.
“The UK’s support for Nigeria includes backing federal green bond issuances, providing guarantees for infrastructure investment, and collaborating on the Lagos International Financial Centre project to enhance Lagos as a financial hub.”
She added that the significant oversubscription of this bond issuance shows that Lagos State can effectively access capital markets, attract strong demand, and set a precedent for other regions, creating opportunities for climate-resilient growth.



