Lagos raises N244.82bn in oversubscribed green, conventional bonds

By Peter Egwuatu

Lagos State has successfully raised N244.82 billion through the issuance of green and conventional bonds, with proceeds earmarked for major infrastructure projects across the state.

Speaking at the Ministry of Finance/DMO bond signing ceremony in Lagos, Governor Babajide Sanwo-Olu thanked investors for their strong confidence in the state, noting that the issuance is part of Lagos’ N1 trillion debt and hybrid instruments programme.

Sanwo-Olu highlighted Lagos’ pioneering role in the domestic bond market, recalling that the state’s first bond under his administration — issued in 2020 at about N100–N110 billion — set a record at the time.

“Each subsequent bond has surpassed its predecessor,” he said. “Today, Lagos has issued Nigeria’s first subnational Green Bond, securing N14.815 billion. Total bids reached N29.29 billion, affirming our environmental commitments under the THEMES+ Agenda.”

He added that the green bond will support environmentally aligned infrastructure, helping Lagos build “a prosperous, resilient, and environmentally secure future.”

Commissioner for Finance, Abayomi Oluyomi, said the bond project-selection process was guided by the UN Sustainable Development Goals to ensure measurable environmental impact.

He noted that the Series 4 conventional bond, initially targeting N200 billion, closed at N230 billion following strong investor demand.

“This oversubscription reflects sustained market confidence,” he said, adding that Lagos’ benchmark could rise toward N300 billion or even N500 billion in future issuances.

Chapel Hill Denham CEO and lead issuing house, Bolaji Balogun, praised Lagos as a model for fiscal discipline, transparency, and innovation.

“While many states struggle to issue bonds, Lagos stands out,” he said. “Being the first subnational in Africa to issue a green bond is a remarkable milestone.”