Lagos to Raise N214.8b Bond for Infrastructure, Green Projects

Lagos State Governor, Babajide Sanwo-Olu, yesterday unveiled plans by the state government to raise N214.8 billion through bond issuance within the next five days to accelerate infrastructure development and environmental sustainability projects.

Speaking at the Investment Forum and Engagement with Mr. Governor, organised by the Ministry of Finance and the Debt Management Office (DMO), Sanwo-Olu said the funds will be channelled into bridging the state’s infrastructure gap.

According to him, project costs have more than doubled over the last four to five years due to inflation, foreign exchange volatility, and rising construction expenses. He noted that while the N214.8 billion is substantial, it is still small compared to the scale of Lagos’ infrastructure needs.

The bond package comprises a N200 billion, 10-year bond dedicated to 24 infrastructure projects across nine ministries, departments and agencies (MDAs), including housing, health, environment, agriculture, transportation, and science and technology. In addition, the state will float a N14.815 billion green bond, the first of its kind by any sub-national government in Nigeria.

Sanwo-Olu explained that proceeds from the green bond will finance renewable energy, climate change adaptation, and sustainable water and wastewater management initiatives. He added that the decision followed unsuccessful attempts by the state to access international green bond markets.

Bolaji Balogun, CEO of ChapelHill Denham, the lead issuing house, assured that the transaction would be completed within five days, with proceeds expected to be available to the state government in two weeks.

“Lagos continues to lead among sub-nationals, not only in Nigeria but across Africa. We are confident that investors will support this initiative to raise N200 billion in capital,” Balogun said.