The Lagos State Government on Thursday , sealed two major bond issuance worth N244.815 billion, a historic milestone in Nigeria’s capital market, meant to finance ongoing infrastructure projects across the state.
Lagos signed its N14.815 billion Series III Green Bond, becoming Nigeria’s first sub-national to issue a certified green bond under a public debt programme.
The event was attended by Governor Babajide Sanwo-Olu, and other state officials, members of the investment community, partners, among other stakeholders.
Sanwo-Olu, speaking at the event, noted that the issuance was the largest by Lagos State and any sub-national ever in Nigeria.
The five-year fixed-rate instrument, part of the state’s N1 trillion Debt and Hybrid Instruments Issuance Programme, attracted N29.29 billion in bids — almost double the offer.
This was followed by the signing of a N230 billion Series IV Conventional Bond, now the largest sub-national bond issuance ever recorded in Sub-Saharan Africa.
Initially targeted at N200 billion, the offer was expanded after Lagos received N310.06 billion in bids, prompting the state to activate its green-shoe option to accommodate excess demand.
According to Sanwo-Olu, “I proudly welcome us all to this historic event, celebrating many achievements with the conclusion of our N14.815 billion 16.00 per cent Series III Green Bond and N230 billion 16.25 per cent Series IV Bond issuances.
“Through the Series III Green Bond – again, the first ever Green Bond issued by any State Government in Nigeria – we will successfully allot N14.815 billion today.
“This achievement reflects our State’s continued commitment to climate-friendly infrastructure, sustainability, and the long-term resilience of our environment.
“The rigorous project selection process for the Green Bond underscores our dedication to financing projects that directly support the UN Sustainable Development Goals and deliver measurable environmental benefits.
“It is also noteworthy to mention that not only did we obtain a second opinion on the Green, but our Green Bond also meets global standards and are certified by the globally recognised Climate Bonds Initiative (CBI).
“We also celebrate the Series IV Conventional Bond. The state has raised N230 billion compared to the N200 billion we initially set out to raise. We have heard of the size of the Book (as mentioned by Mr Governor).
“We are constrained by regulations on the amount we can take but, I dare say that our benchmark is now N300 billion.This moment is both significant and truly remarkable.
“The issuances are a laudable achievement and testament to the sustained willingness of Lagos State to access and responsibly utilise the domestic capital markets, as well as the tremendous support and confidence that investors continue to show in our economy.
“The proceeds of the bond will fund strategic projects, including: 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 our growing population, upgrading healthcare facilities, including a 280-bed hospital, installation of alternative solar power across schools in Lagos, establishing agro-produce hubs to strengthen food security and create.
Abayomi Oluyemi, Commissioner for Finance, said both issuances align with global sustainability benchmarks and reaffirm Lagos’ position as a leading sub-national performer in Nigeria’s debt market.
The commissioner, affirmed the government’s commitment to transparency, accountability, and the prudent use of every money entrusted to it, saying, “These issuances will directly support critical infrastructure across transport, environment, healthcare, education, and sustainable urban development.”
Bolaji Balogun, Chief Executive Officer of Chapel Hill Denham, commended the state government for maintaining world-class transparency and compliance standards.
Balogun said the state has now achieved two major market firsts ― the first certified sub-national green bond in Africa and the largest sub-national bond issuance in the region.
