Lagos raises N245bn for major infrastructure devt projects
Lagos State has successfully raised N244.82 billion via the issuance of green and conventional bonds, with the funds designated for significant infrastructure projects throughout the state.
During a bond signing ceremony at the Ministry of Finance and DMO in Lagos, Governor Babajide Sanwo-Olu expressed gratitude to investors for their strong faith in the state, emphasizing that this issuance is part of Lagos’ N1 trillion debt and hybrid instruments initiative.
Sanwo-Olu emphasized Lagos’ leading role in the domestic bond market, recalling that the first bond issued during his administration in 2020, valued at approximately N100–N110 billion, set a record at the time.
He stated, “Each following bond has exceeded the previous one. Presently, Lagos has issued Nigeria’s inaugural subnational Green Bond, raising N14.815 billion. Total bids reached N29.29 billion, reinforcing our environmental commitments under the THEMES+ Agenda.”
He further mentioned that the green bond will finance infrastructure that aligns with environmental goals, aiding Lagos in creating “a prosperous, resilient, and environmentally secure future.”
Finance Commissioner Abayomi Oluyomi remarked that the selection process for the bond projects was guided by the UN Sustainable Development Goals to guarantee measurable environmental benefits.
He pointed out that the Series 4 conventional bond, which initially aimed for N200 billion, concluded at N230 billion due to strong investor interest.
He added, “This oversubscription indicates ongoing market confidence,” suggesting that Lagos’ benchmark could increase to N300 billion or even N500 billion in future bond issuances.
Bolaji Balogun, CEO of Chapel Hill Denham and the lead issuing house, lauded Lagos as an example of fiscal discipline, transparency, and innovation.
He remarked, “While numerous states face challenges in issuing bonds, Lagos distinguishes itself. Being the first subnational in Africa to issue a green bond marks a significant achievement.”
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