Governor Babajide Sanwo-Olu has urged private sector investors to strengthen their partnership with Lagos State as his administration prepares to float a fresh bond issuance to finance critical infrastructure projects across the state.
Speaking at an Investor Forum in Lagos, the governor unveiled plans for the issuance of a maiden ₦14.8 billion green bond and a ₦200 billion conventional bond, both under the state’s ambitious ₦1 trillion Debt and Hybrid Instruments Issuance Programme. He described the initiative as a vital step in mobilising resources for projects that will enhance economic growth, improve living conditions, and sustain Lagos’ role as Nigeria’s commercial hub.
Sanwo-Olu assured investors that Lagos has built a reputation of credibility in the debt market and possesses the track record, governance structure, and financial capacity to deliver on promises. He said successive administrations have maintained a culture of continuity by building on achievements rather than discarding projects, making the state a safe destination for capital.
“There are enormous opportunities in Lagos for sustainable growth. With more funding, we can do a lot more,” the governor said. “Inflation and rising costs will always be a factor, but your investment today secures tomorrow’s progress.”
The Commissioner for Finance, Abayomi Oluyomi, reinforced the state’s credentials, recalling that Lagos first entered the bond market in 1987 and has since sustained a record of timely debt repayment and transparent use of funds. “We are not new to the market. We have a solid reputation for managing our debt obligations responsibly and using the proceeds for their intended purposes,” he told the gathering.
Backing the new issuance, the Chairman of the Lagos State House of Assembly Committee on Finance, Femi Saheed, pledged that lawmakers would provide oversight to ensure transparency and accountability in project execution. He emphasised that the legislature remains committed to supporting funding mechanisms that directly improve the lives of Lagosians.
According to details presented at the forum, the ₦14.8 billion green bond will run on a 5-year tenure and fund environmentally sustainable projects aligned with global climate goals and the Sustainable Development Goals (SDGs). The ₦200 billion conventional bond will have a 10-year tenure and finance 24 large-scale projects across multiple sectors.
These projects include expansion of rail and road infrastructure, waterfront development, construction of affordable housing estates, upgrading of healthcare facilities, and establishment of agricultural produce hubs. Officials noted that the projects are carefully selected for their potential to boost productivity, create jobs, and improve urban resilience.
The bond programme is a central component of the state government’s strategy to attract private capital into public infrastructure. With Lagos accounting for a significant share of Nigeria’s GDP and serving as a magnet for migration, officials argue that sustained investment in critical infrastructure is the only way to meet the demands of rapid urbanisation.
Sanwo-Olu’s administration has consistently emphasised its infrastructure agenda, from expanding transport networks to providing affordable housing and healthcare. By turning to the bond market, the government hopes to supplement internally generated revenue and federal allocations with long-term private funding.
Analysts note that Lagos remains Nigeria’s most active sub-national player in the capital market, with its debt issuances often oversubscribed due to investor confidence in the state’s repayment capacity. The latest programme, observers say, will test the market’s appetite amid challenging macroeconomic conditions, but Lagos’ track record may give it an edge.
If successfully executed, the ₦214.8 billion bond issuance could accelerate the delivery of projects that touch directly on the lives of residents, consolidating Lagos’ position as a model for sub-national financing in Nigeria.
