Lagos State achieved a historic milestone in the Nigerian capital markets with the successful signing and completion of a double bond issuance, comprising a N14.815 billion Series 3 green bond and a N230 billion Series 4 conventional bond, under its N1 trillion Debt and Hybrid Instruments Issuance Programme.
The combined transaction represents the largest bond issuance ever by any state government in Nigeria and the first subnational Green Bond in the country’s history.
At Thursday’s double signing ceremony, Lagos State Governor Babajide Sanwo-Olu described the achievement as “a bold global statement” of the state’s commitment to responsible governance, sustainable financing and long-term infrastructure development.
According to the Governor, the two issues attracted a total of N338 billion in bids, demonstrating the overwhelming confidence of investors in the fiscal discipline and development agenda of Lagos State. The Green Bond alone attracted bids of N29.29 billion, while the Conventional Bond attracted N310.06 billion.
“This is now the largest bond issuance ever by Lagos State, and indeed by any sub-national in Nigeria,” Sanwo-Olu said, adding that “their investment is not merely financial, it is a lifeline to the aspirations and future of nearly 25 million Lagosians.”
The State Commissioner for Finance, Mr. Abayomi Oluyomi, noted that the signing ceremony marks three important milestones for the Nigerian capital market: Nigeria’s first sub-national Green Bond; the largest single bond issue in Lagos State and the largest subnational bond issue in Nigeria.
He explained that the Green Bond was supported by a rigorous project selection process and certified by the internationally recognized Climate Bond Initiative, fully aligning with global sustainability standards and the UN Sustainable Development Goals (SDGs).
The oversubscription of the Series 4 conventional bond, he added, reflects strong market confidence in the governance, project pipeline and long-term infrastructure financing strategy of Lagos State.
The State announced that bond proceeds will fund large-scale infrastructure and socioeconomic projects, including major highway expansions and mobility improvements; construction and rehabilitation of roads and development of affordable housing.
He added that the proceeds will also be used to build a new 280-bed hospital and other healthcare improvements; install solar energy in public schools and strengthen food security with agricultural processing centers.
“These projects reflect our vision of a prosperous, resilient and environmentally safe Lagos,” the Governor said.
The double issue received praise from international financial institutions, investors and development partners.
Bolaji Balogun, CEO of Chapel Hill Denham, praised Lagos for maintaining the highest standards of transparency and compliance among Nigerian states, describing it as the “gold standard” in subnational financing.
He revealed that over 44 professional organizations were involved in the transaction, the largest number involved in any Nigerian bond issuance, while noting that the combined investor book exceeded N300 billion, a national first for any sub-national or corporate issuer.
Similarly, Temilola Akinrinade, speaking on behalf of the British Deputy High Commissioner, welcomed the transaction as a milestone in the partnership between the United Kingdom and Nigeria, especially on sustainable financing and capital market development.
He emphasized that the new Green Bond sets a precedent for other subnational governments seeking climate-aligned financing. The Governor thanked key federal institutions for their contribution to the broadcast.
Among which are the Federal Ministry of Finance; Debt Management Office (DMO); Securities and Exchange Commission (SEC) and National Pension Commission (PenCom).
Their support, according to Sanwo-Olu, was “invaluable and instrumental” in achieving the record broadcast.
With the successful double issuance, Lagos State has reinforced its leadership position in Nigeria’s domestic capital markets and established a sustainable financing model on the continent.
As investors, regulators and international partners applauded the transaction, one message resonated throughout the event: Lagos has not only broken records, it has created a new blueprint for how subnational governments can mobilize large-scale, climate-conscious, investor-backed financing to drive development.
The State indicated that future emissions under the N1 trillion program may be even higher as confidence in Lagos remains strong.
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