Lagos State has achieved a significant financial milestone with the successful completion of the bookbuild for its latest bond offering, demonstrating exceptional investor confidence.
In a statement released on Monday, the 17th of November, 2025, Lagos State Commissioner for Finance, Yomi Oluyomi, confirmed the overwhelming interest received from the investment community.
Lagos floated a N200 billion Conventional Bond alongside a N14.8 billion Green Bond, both of which saw subscription volumes dramatically exceed initial expectations.
Oluyomi noted that the Conventional Bond, which is now recognized as “the largest ever issued by a non-corporate sub-national entity in Nigeria,” attracted an impressive total of N308 billion in bids, which signifies a robust 54 per cent oversubscription rate.
Furthermore, Lagos made history as the first sub-national government in the country to float an impact-driven climate bond. The Green Bond generated a massive N28.7 billion in commitments, achieving a subscription rate 94 per cent higher than the amount initially offered.
The statement quoted Governor Babajide Sanwo-Olu, who stated that the remarkable investor turnout “underscores renewed global confidence in Nigeria’s economic direction, propelled by the reforms introduced by President Bola Ahmed Tinubu, as seen in the recent oversubscription of the Federal Government’s Eurobond.”
The Governor added that this achievement reflects internal strength, saying: “In Lagos, this achievement reflects our resilience and the steadfast support of the private sector, which continues to demonstrate faith in our aspiration to build Africa’s model megacity, safe, secure and fully functional.”
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Sanwo-Olu reiterated the state’s dedication to fiscal responsibility, transparency, and accountability, promising that Lagos “will maintain a business-friendly environment as it advances toward becoming a global financial hub.” He concluded with a commitment to focus, stating: “We will keep our eyes on the ball.”
Strategic Deployment of Funds
According to the statement, the capital raised from the bond issuance will be strategically directed into priority projects aligned with the THEMES+ Agenda. This funding will focus on crucial infrastructure and human development sectors, including transportation, healthcare, education, and environmental sustainability.
These initiatives are “expected to significantly enhance the quality of life for residents and strengthen the state’s long-term economic resilience.”
The Conventional Bond, described as a “long-term, fixed-rate debt instrument issued under the Lagos State Debt Issuance Programme,” establishes a framework for raising capital through various securities for key developmental projects across the state.