Sanwo-Olu Says Strong Bond Performance Shows Global Confidence in Lagos Economy

Lagos State Governor, Babajide Sanwo-Olu, has said the impressive outcome of the state’s latest bond issuances reflects strong global confidence in Lagos’ economy, governance structure and long-term development agenda.

Speaking at the signing ceremony for the state’s Series III Green Bond and Series IV Conventional Bond on Thursday, the governor said the overwhelming investor interest demonstrates trust in Lagos’ fiscal discipline and its commitment to sustainable development.

“The success of our green bond is more than a financial achievement. It signifies global confidence in Lagos,” Sanwo-Olu said. “This transaction affirms our credibility, preparedness and our shared ambition to build a resilient, sustainable city.”

The state recorded a total subscription of ₦339 billion, far above expectations. The ₦14.815 billion Series III Green Bond attracted bids worth ₦29.29 billion, while the ₦200 billion Series IV Conventional Bond received ₦310.06 billion.

Lagos eventually activated its green-bond option to raise ₦230 billion, making it the largest sub-national bond issuance in Sub-Saharan Africa. It is also Nigeria’s first-ever sub-national green bond, placing Lagos at the forefront of climate-focused financing.

Sanwo-Olu noted that the oversubscription underscores investor confidence in the administration’s T.H.E.M.E.S+ Agenda. He assured residents that the funds will support key infrastructure projects across transportation, housing, healthcare, education, environmental sustainability and urban renewal. Transparency and accountability, he added, will guide the implementation.

The governor expressed appreciation to President Bola Tinubu, relevant federal agencies, the Lagos State House of Assembly and technical partners for their support. He also mentioned receiving the Time Africa Impact Personality of the Year Award at the G20 Africa Impact Summit in Johannesburg, describing it as another testament to Lagos’ growing global influence.

Commissioner for Finance, Abayomi Oluyomi, described the green bond issuance as a landmark for Nigeria’s capital market, noting that it meets international standards under the Climate Bonds Initiative. He said the funds will support SDG-aligned projects, including solar energy investments, healthcare upgrades, education facilities, food security initiatives and transportation improvements.

Oluyomi added that the Series IV Conventional Bond raised ₦230 billion successfully and said strong investor appetite shows Lagos could raise between ₦300 billion and ₦500 billion in future issuances, pending regulatory approval. He credited the achievement to the leadership of the governor and deputy governor, as well as federal regulators, the State Assembly and key financial advisers.

The issuance also received praise from the United Kingdom. Representing the UK Deputy High Commissioner, Temilola Akinrinade of the UK’s Department for International Development (DFID) said Lagos and Nigeria “should be incredibly proud” of the milestone. She noted that the signing follows years of collaboration between the UK government, Lagos State and Financial Sector Deepening Africa (FSDA).

According to her, green bonds provide affordable capital for climate-resilient economic growth. She highlighted the UK’s support for federal green bonds and key investments like the Lagos Free Zone through a ₦53 billion InfraCredit guarantee.

Akinrinade added that the strong oversubscription sends a clear global signal that sub-national governments can raise substantial capital, attract robust investor interest and issue credible green instruments. “This opens real opportunities to mobilise financing for sustainable, climate-resilient development,” she said.