Lagos Smashes Records as N200bn Bond Draws N308bn in Investor Demand

Lagos State has recorded a major milestone in the capital market, closing the book-build for its new bond issuance with overwhelming investor demand across both conventional and green tranches.

The state’s ₦200 billion conventional bond – the largest ever issued by a non-corporate sub-national in Nigeria – attracted total bids of about ₦308 billion, representing an oversubscription of 54–55%.

In addition, Lagos’ ₦14.8 billion Green Bond drew even stronger appetite from domestic investors, securing ₦28.7 billion in commitments — 94% above the initial offer. Lagos remains the only Nigerian sub-national to issue an impact-focused climate or green bond.

Governor Babajide Sanwo-Olu described the strong demand as a vote of confidence in Nigeria’s economy and Lagos State’s financial credibility, attributing it partly to the macroeconomic reforms of President Bola Ahmed Tinubu and the recent oversubscription of the Federal Government’s Eurobond.

“This is a reflection of global confidence in Nigeria’s economy, fostered by the bold reforms initiated by President Tinubu,” the governor said. He added that the outcome also highlights Lagos’ resilience and the continued trust of private-sector partners in the state’s development vision.

Sanwo-Olu reaffirmed his administration’s commitment to prudent financial management, transparency and building Lagos into a global financial hub.

According to the Commissioner for Finance, Yomi Oluyomi, proceeds from the bond issuance will be directed toward priority capital projects under the THEMES+ Agenda. These include transportation infrastructure, healthcare improvements, educational development and environmental sustainability initiatives.

Analysts note that the strong performance of both bond tranches reinforces Lagos State’s dominance in Nigeria’s sub-national debt market and may set new benchmarks for other states, especially as institutional appetite for green and climate-linked instruments continues to rise.

Officials say investments financed through the bonds are expected to improve living standards for Lagos’ more than 20 million residents and contribute to the state’s long-term ambition of becoming a major global financial centre.