Lagos N200bn bond oversubscribed by 55% at N310bn

Lagos State’s ₦200 billion conventional bond was oversubscribed by 55 percent, a development that highlights robust domestic investor confidence. This comes as its ₦14.8 billion Green Bond attracted almost twice the initial offer, securing N28.7 billion, a 94 percent oversubscription.

The conventional bond, the largest ever issued by a non-corporate sub-national entity in Nigeria, drew total commitments of ₦308 billion, underscoring Lagos’ dominance in the country’s sub-national debt market. The strong appetite for the Green Bond also demonstrated investor enthusiasm for impact-focused, climate-conscious instruments, a niche Lagos continues to lead nationally.

Governor Babajide Sanwo-Olu described the results as a vote of confidence in both Lagos and Nigeria’s wider economic direction. “This is a reflection of the global confidence in Nigeria’s economy, fostered by the bold reforms initiated by President Bola Ahmed Tinubu, as seen in the oversubscription of the Federal Government’s recent Eurobond,” he said.

The governor added that the success of the issuance underscores the state’s “resilience and the unwavering support of private-sector partners,” reaffirming the administration’s commitment to fiscal transparency and prudent financial management.

Proceeds from the bond sales are expected to fund priority capital projects under Lagos’ THEMES+ Agenda, focusing on transportation, healthcare, education, and environmental sustainability. The government said these investments will improve living standards for the state’s more than 20 million residents and advance its ambition of becoming a global financial hub.

Analysts suggest the landmark issuance could set new benchmarks for sub-national debt instruments, particularly as appetite grows among institutional investors for green and climate-linked investments. Lagos’ dual success reflects both investor confidence and a strategic push toward sustainable economic growth, positioning the state as a trailblazer in Nigeria’s evolving financial landscape.