Lagos Unveils N214.8 Billion Bond Plan, Launches Nigeria’s First Sub-National Green Bond

The Lagos State Government has announced a landmark bond issuance valued at N214.8 billion, making history with Nigeria’s first sub-national environmental sustainability bond.

Governor Babajide Sanwo-Olu unveiled the dual issuance—comprising a N14.815 billion Green Bond and a N200 billion conventional bond—during an Investor Forum on Friday at the Eko Hotel and Suites, Lagos. The bond programme falls under the state’s N1 trillion Debt and Hybrid Instrument Issuance Programme, marking the single largest bond by any sub-national entity in Africa.

Sanwo-Olu called on private investors to continue supporting Lagos in delivering critical infrastructure to match the state’s growing population and economy. He emphasized Lagos’ financial credibility and consistency in meeting obligations.

“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.

The Governor also stressed that Lagos has maintained a legacy of continuity, with successive administrations building on past achievements, ensuring investor funds remain secure.

Commissioner for Finance, Mr. Abayomi Oluyomi, noted that the new bond issuance will fund 24 infrastructure projects across nine ministries, departments, and agencies (MDAs), covering critical sectors such as housing, health, environment, agriculture, transportation, and innovation.

The highlight of the announcement was the N14.815 billion Green Bond, the first of its kind by a Nigerian state government. Proceeds from this issuance will finance environmentally sustainable initiatives, including renewable energy, climate change adaptation, and sustainable water and wastewater management.

Backing the state’s track record, Mr. Bolaji Balogun, CEO of Chapel Hill Denham Advisory Services Limited, commended Lagos for consistently leading the way in 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 naira of capital,” he said.

He revealed that the bonds will be launched next week, remain open for about five days, and are expected to deliver proceeds to the state within 15–20 days.

With a history of issuing bonds worth more than $3.1 billion over the last 17 years without default, Lagos has maintained a debt-service-to-revenue ratio of 19.2%, supported by strong local and international ratings, including an A1+ local credit rating and AAA rating from Fitch Ratings.

The new issuance reaffirms Lagos State’s ambition to secure funding for growth while positioning itself as a pioneer in sustainable finance across Africa.