Lagos Raises N230bn From Capital Market To Invest In Environment, Others

Lagos State has achieved a major milestone in its infrastructure financing drive, raising N230bn from the capital market to fund key projects across the environment, transportation, healthcare, housing and other critical sectors.

At a ceremony held on Thursday in Victoria Island, the state issued its first-ever subnational Green Bond — a N14.815bn Series III issuance — and also allotted a N230bn Series IV Conventional Bond at a 16.25 per cent coupon rate.

Both issuances were executed under the State’s N1tn Debt and Hybrid Instruments Issuance Programme.

Governor Babajide Sanwo-Olu described the development as a bold vote of confidence from investors, noting that the oversubscription recorded in both bonds reflected trust in Lagos’ economic direction and commitment to sustainable growth.

The Series III Green Bond, set to raise N14.815bn at a 16 per cent coupon rate, attracted bids totalling N29.29bn, with N27.79bn falling within price guidance.

The Series IV Conventional Bond, targeted at raising N200bn, also recorded a strong investor turnout, amassing bids worth N310.06bn.

Lagos opted for a green shoe option, allotting N230bn at a 16.25 per cent coupon rate.

“This transaction is now the largest bond issuance ever undertaken by Lagos State Government. I am humbled by the depth of confidence the investment community continues to demonstrate towards Lagos State. This trust is not taken for granted,” Sanwo-Olu said.

“Lagos State Government will continue to pursue solid economic fundamentals, transparent fiscal practices, infrastructure development, and environmental protection and preservation.”

According to the governor, proceeds from the bonds will be deployed to transportation, housing, urban renewal, healthcare, education, environmental protection and other infrastructure that support long-term development and climate resilience.

Sanwo-Olu emphasised that the Green Bond validates his administration’s climate-conscious approach, aligning with Lagos’ long-term plans to safeguard the environment while expanding opportunities for its population.

Commissioner for Finance, Mr. Yomi Oluyomi, noted that projects selected under the Green Bond meet global standards, certified by the Climate Bond Initiative.

He said the conventional bond would have absorbed the full N310.06bn subscription but was limited by regulatory ceilings.

“The issuances are a testament to the laudable achievement and testament to the sustained willingness of Lagos to access and responsibly utilise the domestic capital market and the tremendous support the investors have continued to show the State,” Oluyomi said.

Financial adviser for the transaction and CEO of Chapel Hill Denham, Mr. Bolaji Balogun, described the deal as a new benchmark for subnational financing in Nigeria, commending Lagos for maintaining the transparency and financial discipline necessary to earn investor trust.

Representing the United Kingdom’s Deputy High Commissioner, Ms. Temilola Akinrinade congratulated Lagos, noting that the strong investor response aligns with global shifts toward long-term finance for sustainable infrastructure.

“The investors’ response shows a clear confidence in Lagos State’s strategy, planning and financial discipline. It also reflects Nigeria’s recent economic performance led by President Bola Ahmed Tinubu, which has now opened up new frontiers for growth and opportunities,” Akinrinade said.