Lagos bonds worth N244.815bn will fund strategic projects, including rail expansion, roads, healthcare, and affordable housing across the state

Lagos bonds have been issued to fund key infrastructure projects as the Lagos State Government sealed two major bond deals worth N244.815bn on Thursday.

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The state first signed its N14.815bn Series III Green Bond, becoming Nigeria’s first sub-national entity to issue a certified green bond under a public debt programme.

The event, held at Balmoral Event Centre, Victoria Island, saw Governor Babajide Sanwo-Olu lead dignitaries, including members of the State Executive Council, House of Assembly, permanent secretaries, investment partners, and other stakeholders.

Sanwo-Olu described the issuance as the largest by the state. The five-year fixed-rate instrument, part of the N1tn Debt and Hybrid Instruments Issuance Programme, attracted N29.29bn in bids, almost double the initial offer.

This was followed by the signing of a N230bn Series IV Conventional Bond. Initially targeted at N200bn, the offer was expanded after Lagos received N310.06bn in bids, activating the state’s green-shoe option to accommodate the excess demand.

“The proceeds of the bond will fund strategic projects, including the expansion of the Blue and Red Rail Lines to ease urban mobility, the construction of the Lekki-Epe Airport Road to boost connectivity, and the development of affordable housing schemes,” Sanwo-Olu said.

He added that funds would also support upgrading healthcare facilities, including a 280-bed hospital, the installation of solar power systems across schools, and establishing agro-produce hubs to strengthen food security.

Sanwo-Olu emphasised that the Series III Green Bond reflects Lagos’ commitment to climate-friendly infrastructure and long-term environmental resilience.

“Our rigorous project selection process ensures financing for initiatives that directly support the United Nations Sustainable Development Goals and deliver measurable environmental benefits,” he said.

Commissioner for Finance, Abayomi Oluyomi, noted that both bond issuances met global sustainability benchmarks and reaffirmed Lagos’ leadership in Nigeria’s sub-national debt market.

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“These funds will directly support critical infrastructure across transport, environment, healthcare, education, and sustainable urban development,” he said.