The Lagos State Government has unveiled plans to raise N214.8 billion through bond issuance within five days, marking a bold step in bridging the state’s growing infrastructure funding gap.
The announcement was made on Friday during the “Investment Forum and Engagement with Mr. Governor”, hosted by the Ministry of Finance and the Debt Management Office (DMO) in Lagos.
Speaking at the event, Governor Babajide Sanwo-Olu emphasized the urgent need to address the state’s infrastructure deficit, adding that the targeted bond issuance is relatively small when placed against the backdrop of Nigeria’s high inflation, volatile exchange rates, and the rising cost of capital projects.
“The same projects we executed four to five years ago now cost more than double,” Sanwo-Olu said. “N214.8 billion may sound huge, but in today’s economic reality, it’s only a fraction of what Lagos truly needs.”
The total issuance is structured into two key components:
- N200 billion in 10-year bonds dedicated to 24 infrastructure projects across nine Ministries, Departments, and Agencies (MDAs).
- A green bond component, with proceeds earmarked for environmentally sustainable initiatives.
Governor Sanwo-Olu noted that this is the first sub-national green bond initiative of its kind in Nigeria, undertaken after earlier efforts to raise funds through international green bond markets fell through.
Sanwo-Olu revealed that the green bond proceeds will support Renewable energy projects,, Climate change adaptation measures and Sustainable water and wastewater management systems. He stressed the state’s commitment to aligning infrastructure development with global sustainability standards.
Also speaking at the event, Bolaji Balogun, CEO of ChapelHill Denham and lead issuing house, expressed confidence that the deal would close successfully.
“Lagos is first among sub-nationals, not just in Nigeria but across Africa, taking bold financial steps like this,” Balogun said. “We aim to close the bond issuance in five days and remit proceeds to the state government within two weeks.”
He praised Lagos for its fiscal discipline and investor-friendly climate, adding that the city remains a top destination for public-private infrastructure investment in Africa
