Lagos State, Nigeria’s most industrialised state, has unveiled plans to raise ₦214.8 billion ($142.75 million) from the capital markets, Governor Babajide Sanwo-Olu announced at an investor forum in Lagos on Friday.
The issue is part of the state’s ₦1 trillion ($1.57 billion) Debt and Hybrid Instruments Issuance Programme launched in 2023 and represents its latest tranche aimed at financing infrastructure and sustainability initiatives.
It comprises a ₦200 billion ($132.91 million) conventional 10-year bond to fund 24 major projects across transport, housing, healthcare, agriculture and technology, and a ₦14.8 billion ($9.83 million) five-year green bond – the first of its kind by a Nigerian sub-national – to support climate-focused initiatives such as renewable energy, climate adaptation and sustainable water and wastewater management.
Bolaji Balogun, CEO of Chapel Hill Denham, which is managing the issuance, said Lagos is “first among sub-national governments on the continent” to raise such capital, underlining its strong investment appeal. The investment bank confirmed that the offer will open this week and run for about five days, with proceeds expected within 15–20 days.
Sanwo-Olu urged private investors to seize “enormous opportunities in Lagos for sustainable growth,” stressing the state’s financial credibility and governance continuity. “Inflation and rising costs will always be a factor, but your investment today secures tomorrow’s progress,” he said.
Finance Commissioner Abayomi Oluyomi highlighted Lagos’s track record in Nigeria’s bond market since 1987 and its consistent record of debt repayment.
Over the past 17 years, the state has raised more than $3.1 billion through bond issuances. “We have a solid reputation for managing our debt obligations responsibly and using the proceeds for their intended purposes,” Oluyomi said.
In April 2025, Fitch Ratings affirmed Lagos state’s long-term issuer default rating at B+ with a negative outlook and its national long-term rating at AA+(nga) with a stable outlook, citing strong operating performance supported by a growing internally generated revenue (IGR) base.
The state recorded a 45% rise in IGR in 2024 to ₦1.3 trillion ($887.34 million) from ₦895 billion ($1.41 billion) in 2023.
Chapel Hill Denham – named “Best Investment Bank in Nigeria” at the 2025 Euromoney Awards for Excellence in London – is structuring, marketing and distributing the bonds, bolstering the credibility of the issuance.
Note: Figures converted at official average exchange rates: ₦633.83/$1 for the full year 2023, ₦1,465.04/$1 for 2024, and ₦1,504.68/$1 as of September 12, 2025.
