By Our Reporter
Lagos State Government on Thursday sealed two major bond issuances worth N244.815 billion, marking historic milestones in Nigeria’s domestic capital market and reinforcing the state’s leadership in innovative infrastructure financing.
The state government first 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 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.
The event organized by the Lagos State Ministry of Finance and Debt Management Office (DMO) was attended by Governor Babajide Sanwo-Olu, who led dignitaries, including members of the State House of Assembly, members of the State Executive Council, Permanent Secretaries, members of the investment community, partners, stakeholders, among others on the occasion.
Speaking on the occasion, held in Victoria Island, Governor Sanwo-Olu noted that the issuance was the largest by Lagos State and the largest sub-national issuance ever in Nigeria.
Sanwo-Olu said that the achievement reflected Lagos State's continued commitment to climate-friendly infrastructure, sustainability, and the long-term resilience.
Besides, the governor said that the rigorous project selection process for the Green Bond underscored the state's dedication to financing projects that directly support the United Nations' (UN) Sustainable Development Goals to deliver measurable environmental benefits.
He described the issuances as "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."
According to him, 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.
"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," the governor stated.
Also speaking, the State Commissioner for Finance, Abayomi Oluyomi, said both issuances aligned with global sustainability benchmarks and reaffirmed Lagos’ position as a leading sub-national performer in Nigeria’s debt market.
The commissioner, affirmed the state's government's commitment to transparency, accountability, and the prudent use of every money entrusted to it, saying that the issuances would directly support critical infrastructure across transport, environment, healthcare, education, and sustainable urban development.
"These issuances will directly support critical infrastructure across transport, environment, healthcare, education, and sustainable urban development," he said.
Oluyomi, however, acknowledged the commitment of the Minister of Finance and Coordinating Minister for the Economy; the Director General (DG) of the Debt Management Office, Nigeria; the DG at PenCom, the Commissioners for Justice and Accountant-General, Lagos State; the Permanent Secretary, Debt Management Office, among others who, he said laboured diligently to actualise the THEMES+ Agenda.
The Chief Executive Officer (CEO) of Chapel Hill Denham, Bolaji Balogun, in his remark, commended the Lagos State Government for maintaining world-class transparency and compliance standards.
Balogun said the state had now achieved two major market firsts, acknowledged as the first certified sub-national green bond in Africa and the largest sub-national bond issuance in the region.
Private Sector Development Adviser, Temilola Akinrinade, highlighted the long-standing collaboration between Lagos and the UK government on green finance, noting that the success of both issuances demonstrated Investors' confidence in the state’s governance structure and Nigeria’s ongoing economic reforms.
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