Sanwo-Olu Unveils N214.8bn Bond to Power Lagos Infrastructure & Green Projects

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Olori Uwem

Well-Known Member
Mar 18, 2024
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Sanwo-Olu Unveils N214.8bn Bond to Power Lagos Infrastructure & Green Projects

Governor Babajide Sanwo-Olu has called on investors to back Lagos State’s ambitious infrastructure drive through its newly launched ₦214.8bn bond issuance.

Key Highlights:
• The Programme: Part of Lagos’ ₦1 trillion Debt & Hybrid Instrument Issuance Programme.

• Bond Structure:
• ₦200bn, 10-year bond → funding 24 infrastructure projects across 9 MDAs (housing, health, transport, agriculture, environment, innovation & science/tech).

• ₦14.8bn Green Bond → Nigeria’s first-ever subnational green bond, financing renewable energy, climate change adaptation, sustainable water & waste management.

• Investor Confidence:
• Lagos boasts a debt-service-to-revenue ratio of 19.2%.
• Strong ratings: A1+ (local) & AAA (Fitch).
• Track record: First Nigerian subnational to issue a bond (₦30m in 1987).

️ What They Said:
• Sanwo-Olu:
“There are enormous opportunities in Lagos for sustainable growth. Inflation and rising costs will always be factors, but your investment today secures tomorrow’s progress.”

• Commissioner of Finance, Abayomi Oluyomi:
“Investors want more than returns—they want impact. Social, diaspora, and environmental bonds are now at the centre of our strategy.”

• Bolaji Balogun (Chapel Hill Denham):
“Lagos continues to lead the way in Nigeria and Africa in innovative financing.”

️ Why It Matters:
• Lagos’ 2025 budget: ₦3.37tn, with ₦398.66bn earmarked for infrastructure—much of it dependent on debt financing.

• With a fast-growing population & economy, Lagos is positioning itself as Africa’s financial & sustainable development hub.

• The bond sale is expected to close in ~5 days, with proceeds delivered within 15–20 days.