Lagos State has successfully closed the bookbuild for its largest-ever debt raising programme. The combined ₦214.8 billion bond issuance drew bids worth nearly ₦340 billion, marking one of the strongest subnational bond performances in Nigerian history.
The state offered a ₦200 billion conventional bond and a separate ₦14.8 billion green bond. Both tranches were heavily oversubscribed by domestic pension funds, banks, asset managers and high-net-worth investors.
The ₦200 billion conventional bond, the biggest ever by a non-corporate subnational entity in Nigeria, attracted ₦310 billion in orders. This represents a 55% oversubscription and underscores deep liquidity chasing Lagos paper.
Lagos remains the most creditworthy state in Nigeria, consistently rated higher than many sovereign peers by local and international agencies.
In a Nigerian first for subnational issuers, Lagos launched a ₦14.8 billion green bond. Investors placed ₦29.29 billion in bids, delivering a remarkable 97.7% oversubscription.
The green bond proceeds will finance environmentally sustainable projects aligned with global climate goals.
Governor Babajide Sanwo-Olu described the result as a vote of confidence in both federal reforms and Lagos governance. “This is a reflection of the global confidence in Nigeria’s economy, fostered by the bold reforms initiated by President Bola Ahmed Tinubu GCFR as reflected in the recent oversubscription of the Federal Government’s Eurobond,” he said.
“In Lagos, ours is a testament to our resilience and the unwavering support of our private sector partners who believe in our vision of building Africa’s model megacity that is safe, secure and functional.
“We shall continue to ensure prudent financial management, accountability and fiscal transparency as we continue to provide a conducive environment for businesses to grow. Our dream is to make Lagos a global financial hub; we will keep our eyes on the ball.”
All bond proceeds will directly finance priority infrastructure under Governor Sanwo-Olu’s THEMES+ agenda. Key focus areas include transportation upgrades, healthcare facilities, education expansion, and environmental sustainability initiatives that will improve quality of life for millions of Lagosians.
