Sanwo-Olu seeks investor backing for N214.8bn bond

The Governor of Lagos State, Babajide Sanwo-Olu, has called on investors to support the infrastructural development drive of the state through investing in the newly launched N214.8bn bond.

Sanwo-Olu made the call at the Investor Forum on the Series III Green Bond and Series IV Bond Issuance under the 1 Trillion Debt and Hybrid Instrument Issuance Programme.

Lagos is no stranger to bonds, being the first subnational to issue a revenue bond in Nigeria, a N30m bond issued in 1987 to fund the Lekki Peninsula Scheme 1. In the state’s 2025 Budget of Sustainability set at N3.37tn, the sum of N398.66bn had been budgeted for critical infrastructure to be financed through a combination of internal and external debt, reinforcing the importance of debt financing solutions.

Speaking at the investors forum, Sanwo-Olu called for continued support from the private investors towards the development of the state in the provision of infrastructure needed to keep up with the ever-increasing population and the size of the economy.

He assured potential investors of the state’s financial credibility and its unwavering commitment to development, stressing that Lagos has both the track record and capacity to deliver on key infrastructure projects if adequately funded.

“There are enormous opportunities in Lagos for sustainable growth. With more funding, we can do a lot more. Inflation and rising costs will always be a factor, but your investment today secures tomorrow’s progress,” Sanwo-Olu said.

The governor noted that Lagos has maintained a tradition of continuity, with successive administrations building on past achievements, and reiterated the security of investor funds.

In his welcome address, Commissioner for Finance, Mr. Abayomi Oluyomi highlighted the Lagos State Government’s longstanding fiscal responsibility, stating that it is set to issue a new series of bonds to fund infrastructure development and promote environmental sustainability.

He said, “The financial world is shifting towards impact-driven investments, and Lagos cannot afford to be left behind. Investors are no longer just looking at returns; they want to see social impact, environmental sustainability, and long-term development.

“That is why social, diaspora, and environmental impact bonds must now be front and centre in our strategy. Social bonds allow us to fund projects that directly uplift communities—affordable housing, healthcare, and education initiatives. If structured correctly, they can attract impact investors who are actively contributing to societal progress.

“We also need to work harder at communicating all our accountability and transparency initiatives in ensuring every kobo borrowed works efficiently for Lagosians. Lagos is a city of possibilities. We have shown time and again that with visionary leadership, strategic planning, and disciplined execution, we can transform financial limitations into opportunities.”

The N214.8bn bond is in two categories: a N200bn, ten-year bond targeted at 24 infrastructure projects across nine ministries, departments, and MDAs, which cut across housing, health, environment, agriculture, transportation, innovation, and science & technology.

The second is an N14.815bn green bond, the first of its kind by a sub-national government in Nigeria. The proceeds from the green bond will be channelled into environmentally sustainable initiatives such as renewable energy, climate change adaptation, and sustainable water and wastewater management.

Also speaking, the Chief Executive Officer of Chapel Hill Denham Advisory Services Limited, Mr. Bolaji Balogun, commended Lagos for being a trailblazer.

“Lagos is first among peoples, among the subnationals, not only in this country but on this continent, that we feel confident pushing the envelope and asking the investing markets to work with us to raise N200bn of capital.”

Balogun added that the state bonds will be launched this week and will be open for approximately five days.

“We hope to price these instruments and to deliver proceeds to Lagos State within about 15 to 20 days from today,” he said.