Lagos State has again set the pace on the continent with the launch of a ₦214.8 billion bond, the largest by any sub-national government in Africa.
The issuance comprises a ₦200 billion conventional bond and a ₦14.815 billion Green Bond, the first environmental sustainability bond by any sub-national in Nigeria.
Speaking at the Investor Forum for the Series III Green Bond and Series IV Bond Issuance under the ₦1 trillion Debt and Hybrid Instrument Programme on Friday at Eko Hotel and Suites, Governor Babajide Sanwo-Olu urged private investors to continue supporting Lagos in bridging its infrastructure gap.
“There are enormous opportunities in Lagos for sustainable growth. With more funding, we can do a lot more. Inflation and rising costs will always be a factor, but your investment today secures tomorrow’s progress,” the Governor said.
He assured investors of the state’s financial discipline, track record of project delivery, and commitment to continuity.Commissioner for Finance, Mr. Abayomi Oluyomi, said the ₦200 billion conventional bond will fund 24 critical infrastructure projects across nine MDAs, spanning housing, health, transportation, agriculture, environment, and technology.
The ₦14.815 billion Green Bond, he explained, will finance renewable energy, climate change adaptation, and sustainable water management.Also speaking, Mr. Bolaji Balogun, CEO of Chapel Hill Denham Advisory Services, commended Lagos for its leadership in the Nigerian and African capital markets.
“Lagos is first among others, not only in this country, but on this continent, that is why we feel confident pushing the envelope and asking the investing markets to work with us to raise ₦200 billion of capital,” he said.
Balogun disclosed that Lagos has successfully raised over $3.1 billion in bonds in the past 17 years without default, with a current debt-service-to-revenue ratio of 19.2 percent, a local credit rating of A1+, and a reaffirmed AAA rating from Fitch Ratings.
He added that the latest bond issuance will be launched next week and open for approximately five days, with proceeds expected to be delivered to Lagos within 15 to 20 days.
The bond programme underscores Lagos State’s commitment to sustainable development, fiscal responsibility, and investor confidence, positioning the state as Africa’s financial capital for sub-national investment.
