Lagos targets hospitals, new rail line, bridges with N200b 10-year bond

The Lagos State Government has launched a N200bn 10-year bond to finance signature projects such as hospitals, new rail line and bridges, among others.

The offer, which opened on Friday, October 9, is scheduled to close on Friday, October 16, 2026.

The Lagos State Government Series 5 N200 billion Bond proposes annual coupon or interest rates of between 16.50 per cent and 16.75 per cent, payable twice a year. The minimum subscription is 5,000 units of N1,000 each, totaling N5 million with multiples of N1,000 thereafter.

The net proceeds from the new bond issue would be used to finance ongoing hospital constructions under the Ministry of Health, development of Lagos Metropolitan Area Transport Authority’s Blue Line and construction works on Omu Creek Bridge among others.

The previous issuances under the N1 trillion hybrid programme had been oversubscribed.

In November 2025, Lagos became the first African subnational to issue a green bond with its N14.815 billion 5-Year 16.00 per cent Fixed Rate Series 3 Green Bond 2030.

It also issued a N230 billion 10-Year 16.25 per cent Series 4 Conventional Bond 2035.

The two bonds totaling N245 billion were issued under the N1 trillion hybrid debt programme. Bids for the two bonds had totaled N338 billion.

Analysts at Arthur Steven Asset Management said the latest N200 billion bond issuance was an attractive long-term instrument citing Lagos’ financial profile and ratings.

“Lagos State is Nigeria’s commercial and economic hub, with a diverse and resilient economy contributing approximately 20 per cent of the national gross domestic product (GDP).

“LASG has consistently demonstrated strong growth in internally generated revenue (IGR), supported by a broad tax base, and limited dependence on federal transfers and allocation. The State has averaged an IGR-to-total revenue ratio above 68 per cent in the past three years.

“LASG also continues to lead in advancing and implementing the National Sustainable Development Goals (SDGs). With a strong focus on infrastructure development, LASG is fostering economic growth and strengthening its financial capacity, enabling it to attract further capital,” Arthur Steven stated.