Lagos State achieved a historic milestone in Nigeria’s capital markets with the successful signing and completion of a dual bond issuance, comprising a N14.815 billion Series 3 Green Bond and a N230 billion Series 4 Conventional Bond, under its N1 trillion Debt and Hybrid Instruments Issuance Programme.

The combined transaction represents the largest bond issuance ever by any state government in Nigeria and the first subnational Green Bond in the country’s history.

At the dual signing ceremony on Thursday, Lagos State Governor Babajide Sanwo-Olu described the achievement as “a bold global statement” of the state’s commitment to responsible governance, sustainable financing, and long-term infrastructure development.

According to the Governor, the two issuances attracted a total of N338 billion in bids, showcasing overwhelming investor confidence in Lagos State’s fiscal discipline and development agenda. The Green Bond alone drew bids of N29.29 billion, while the Conventional Bond attracted N310.06 billion.

“This is now the largest bond issuance ever by Lagos State, and indeed by any subnational in Nigeria,” Sanwo-Olu said, adding that “Your investment is not merely financial, it is a lifeline for the aspirations and future of almost 25 million Lagosians.”

The State’s Commissioner for Finance, Mr. Abayomi Oluyomi, noted that signing ceremony marks three major milestones for Nigeria’s capital market: Nigeria’s first subnational Green Bond; the largest single bond issuance by Lagos State and the largest subnational bond issuance in Nigeria.

He explained that the Green Bond was backed by a rigorous project selection process and certified by the internationally recognised Climate Bonds Initiative, aligning entirely with global sustainability standards and the UN Sustainable Development Goals (SDGs).

The oversubscription of the Series 4 Conventional Bond, he added, reflects strong market confidence in Lagos State’s governance, project pipeline, and long-term infrastructure financing strategy.

The State announced that proceeds from the bonds will finance large-scale infrastructure and socio-economic projects, including major highway expansion and mobility improvements; road construction and rehabilitation and affordable housing development.

He added that the proceeds will also be used to build a new 280-bed hospital and other healthcare upgrades; install solar power across public schools and strengthen food security with agro-processing hubs.

“These projects reflect our vision for a prosperous, resilient, and environmentally secure Lagos,” the Governor said.

The dual issuance received commendation from financial institutions, investors, and international development partners.

Mr. Bolaji Balogun, CEO of Chapel Hill Denham, praised Lagos for maintaining the highest standards of transparency and compliance among Nigerian states, describing it as the “gold standard” in subnational financing.

He revealed that more than 44 professional organisations participated in the transaction, the largest number involved in any Nigerian bond issuance, while noting that the combined investor book exceeded N300 billion, a national first for any subnational or corporate issuer.

Similarly, Temilola Akinrinade, speaking on behalf of the British Deputy High Commissioner, celebrated the transaction as a landmark in the UK–Nigeria partnership, especially on sustainable financing and capital market development.

She emphasised that the new Green Bond sets a precedent for other subnational governments seeking climate-aligned funding.
The Governor appreciated key federal institutions for their contribution to the issuance.

Among which are the Federal Ministry of Finance; Debt Management Office (DMO); Securities and Exchange Commission (SEC) and National Pension Commission (PenCom).

Their support, according to Sanwo-Olu, was “invaluable and instrumental” in achieving the record-breaking issuance.

With the successful dual issuance, Lagos State has reinforced its leadership position in Nigeria’s domestic capital markets and set a model for sustainable financing on the continent.

As investors, regulators, and international partners applauded the transaction, one message resonated across the event:
Lagos has not only broken records, it has created a new blueprint for how subnational governments can mobilise large-scale, climate-conscious, investor-backed financing to fuel development.

The State indicated that future issuances under the N1 trillion programme may be even larger, as confidence in Lagos remains strong.

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