Lagos State has achieved a monumental feat in Nigeria’s financial history, sealing two landmark bond issuances worth a combined N244.815 billion.
This extraordinary milestone has set a new Sub-Saharan African record. The twin issuances, unveiled on Thursday, represent a major leap in sustainable financing and infrastructure development as the state pushes forward its ambitious N1 trillion debt and hybrid instruments programme.
The groundbreaking transactions comprise a N14.815 billion Series III Green Bond, which stands as the first certified green bond issued by any Nigerian state, and a N230 billion Series IV Conventional Bond, now officially the largest sub-national bond ever recorded in the region. Both instruments are tailored to support Lagos’ sweeping infrastructure agenda and its long-term vision for sustainable urban transformation.
Governor Babajide Sanwo-Olu, who presided over the launch event attended by investment professionals, partners, and government officials, described the development as a defining moment in the state’s financial evolution. According to him, the achievement is “historic” and a testament to Lagos’ unwavering commitment to climate-friendly investment and responsible fiscal management.
Green Bond Sets New Benchmark for Sustainable Finance
The issuance of the Series III Green Bond marks a bold move in Lagos’ pursuit of eco-friendly development initiatives. Governor Sanwo-Olu emphasized the state’s dedication to globally recognised sustainability standards.
“The Series III Green Bond reflects our dedication to financing projects that directly support the UN Sustainable Development Goals and deliver measurable environmental benefits. Our bond is certified by the globally recognised Climate Bonds Initiative (CBI), reinforcing our adherence to international green finance standards.”
Babajide Sanwo-Olu
Investor confidence in Lagos’ green agenda was immediately evident as the bond attracted N29.29 billion in bids, nearly double the N14.815 billion offered. The oversubscription highlights the growing appetite for environmentally aligned investments within Nigeria’s capital markets and marks a turning point for state-driven sustainability financing.
The proceeds are earmarked for climate-resilient projects such as the deployment of solar power across schools, sustainable urban mobility systems, and initiatives designed to strengthen environmental resilience. With this record-setting bond, Lagos has positioned itself as a model for other sub-national entities aiming to integrate green financing into their development strategies.
Series IV Conventional Bond Surges Past Expectations
The Series IV Conventional Bond served as the powerhouse of the dual issuance, raising a staggering N230 billion after being oversubscribed from an initial N200 billion target. Investors offered a massive N310.06 billion in total bids, prompting the activation of the green-shoe option to absorb excess demand. This overwhelming response underscores the confidence of investors in Lagos’ economic stability, governance structure, and forward-looking infrastructure plans.
Abayomi Oluyemi, Lagos State commissioner for finance, stated that the accomplishment reflects the state’s alignment with international sustainability benchmarks and its reputation as a leader in sub-national finance.
“These issuances will directly support critical infrastructure across transport, environment, healthcare, education, and sustainable urban development, while upholding transparency and prudent financial management.”
Abayomi Oluyemi
The funds raised will drive strategic projects designed to improve the quality of life for millions of residents. These include the expansion of the Blue and Red Rail Lines to tackle chronic urban mobility challenges, the construction of the Lekki-Epe Airport Road, and the development of affordable housing to address Lagos’ population pressures. Health infrastructure will also benefit, notably with the completion of a 280-bed hospital aimed at improving access to quality healthcare.
Market Experts Applaud Lagos’ Milestone Achievement
Investment leaders and market analysts have hailed the dual bond issuance as a transformative moment for African capital markets. The transactions not only set new benchmarks but also demonstrated Lagos’ ability to successfully combine transparency, compliance, and innovation in public finance.
Bolaji Balogun, CEO of Chapel Hill Denham, commended the state’s historic accomplishment.
“Lagos State has achieved two market firsts: the first certified sub-national green bond in Africa and the largest sub-national bond issuance in the region. These milestones showcase world-class transparency, compliance, and investor confidence.”
Bolaji Balogun
Market participants view this dual bond success as a catalyst that will inspire other states in Nigeria and across Africa to explore innovative financing mechanisms. With Lagos breaking new ground, the expectation is that more sub-national governments will leverage capital markets for infrastructure development and sustainable growth.
By tapping into both conventional and green financing instruments, Lagos has demonstrated strategic financial planning and an inclusive approach to building a resilient urban economy.
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