Lagos State has returned to Nigeria’s domestic debt market with plans to raise N200 billion through a 10-year bond under its N1 trillion Debt and Hybrid Instruments Issuance Programme, aimed at financing critical infrastructure across the state. The subscription for the bond opened on Thursday, November 6, 2025, and will close on November 13, 2025.
Priced between 16.15% and 16.25%, the issuance is being managed through a book-building process by lead issuing house Chapel Hill Denham Advisory Services Limited, allowing investors to determine the price based on demand. The proceeds will fund priority physical and social infrastructure projects, including transportation networks, housing, healthcare, and education, in line with Governor Babajide Sanwo-Olu’s THEMES+ development agenda.
Lagos, Nigeria’s commercial and financial hub, contributes approximately 20% of national GDP and has a strong fiscal profile, with internally generated revenue reaching nearly N2 trillion in 2024. The state’s robust financial management, well-diversified economy, and proven track record in debt repayment have earned it ratings of Aa- by Agusto & Co. and AA- by GCR Ratings, making the bond an attractive option for institutional investors seeking stable, high-yielding assets.
Since its debut bond issuance in 2002, Lagos State has consistently tapped the capital market to fund major infrastructure initiatives, including the N80 billion bond in 2012, N87.5 billion Series II in 2017, and N137.3 billion in 2020, all of which were successfully repaid or remain performing.
With Lagos’ population exceeding 20 million and ongoing infrastructure demands, the N200 billion bond is expected to attract strong investor interest, reinforcing the state’s position as a benchmark borrower and a leader in subnational capital market engagement.
