The Lagos State Government says its bond issuance in early November 2025 attracted more investor interest than expected.
According to an update shared on its X handle, the N200 billion conventional bond recorded 55% oversubscription, with total bids reaching N310 billion.
The state also disclosed that its N14.8 billion Green Bond drew significant demand, ending with 97.7% oversubscription at N29.29 billion.
Lagos noted that the Green Bond, intended to support climate-related projects, is the first of its kind issued by a sub-national government in Nigeria.
The conventional bond, the government added, is the largest ever issued by a non-corporate sub-national in the country.
Funds raised from both bonds are expected to go into projects under the THEMES+ Agenda, covering areas such as transportation, healthcare, education, and environmental sustainability.
The state says these projects are aimed at improving public services and supporting long-term development across Lagos.
Governor’s comments
Responding to the bond outcome, Governor Babajide Sanwo-Olu said the level of investor interest mirrors broader market confidence.
He linked it to recent trends in the country’s financial environment, noting that “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 explained that Lagos’ own performance is supported by the state’s long-term planning and the role of private-sector partners. “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,” he said.
Sanwo-Olu added that the government intends to maintain its stated financial standards as it moves forward.
“We shall continue to ensure prudent financial management, accountability, and fiscal transparency as we continue to provide a conducive environment for businesses to grow,” he said.
He also noted that the administration is still pursuing its ambition of positioning Lagos in the global financial landscape.
Backstory
In early November 2025, the Lagos State Government returned to Nigeria’s domestic debt market, aiming to raise up to N200 billion as part of its N1 trillion Debt and Hybrid Instruments Issuance Programme to fund infrastructure projects.
The 10-year bond opened for subscription on Thursday, November 6, 2025, with a price range of 16.15% to 16.25%, according to documents from lead issuing house Chapel Hill Denham Advisory Services Limited.
Investors had until Thursday, November 13, 2025, to indicate how much they wanted to buy and at what price.
Lagos holds strong credit ratings—Aa- from Agusto & Co. and AA- from GCR Ratings—reflecting its solid revenue base, diversified economy, and disciplined spending.
