Lagos State Government has launched a ₦200 billion 10-year bond to fund major rail, health, housing, and infrastructure projects across the state.
The Lagos State Government has announced the issuance of a ₦200 billion, 10-year bond under its ₦1 trillion debt program, marking a major step in financing large-scale infrastructure and social development projects across Nigeria’s commercial capital.
The bond, Series IV due in 2035, opened to investors on November 6 with a yield range between 16.15% and 16.25%, and is expected to close on November 13. The state government said proceeds from the issuance will be directed toward priority infrastructure, housing, health, and transportation initiatives aimed at modernizing the metropolis.
At the heart of the plan is the Lagos Rail Mass Transit (LRMT) system, with ₦56.282 billion earmarked for its expansion. The Lagos Metropolitan Area Transport Authority (LAMATA) will receive ₦34.635 billion to accelerate work on the Blue Line section from Mile 2 to Okokomaiko, expected to raise completion from 32% to 50% within 24 months. Another ₦21.646 billion is dedicated to extending the Red Line from Oyingbo to the National Theatre, improving connectivity across the city’s mainland and coastal zones.
Beyond transport, the bond proceeds will be channeled into social infrastructure. The Ministry of Health will receive ₦17.316 billion to construct new medical facilities, including a psychiatric hospital in Ketu-Ejirin, a general hospital in Somolu, and a 280-bed general hospital in Ojo. Funding will also continue for the New Massey Children’s Hospital, expected to serve as one of West Africa’s largest pediatric centers.
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The Ministry of Housing is allotted ₦9.304 billion, targeting completion of several state housing schemes in Sangotedo, Badagry, Epe, Ibeshe, and Egan-Igando, aimed at easing Lagos’ urban housing deficit.
Meanwhile, about ₦64.9 billion will finance critical infrastructure renewal projects, including the rehabilitation of the Eti-Osa–Lekki–Epe Expressway and reconstruction of the Igbogbo–Bola Tinubu–Igbe Road. Additional works will include the Lekki-Epe Airport Road and Omu Creek Bridge, key to enhancing transportation and trade access across the state.
The bond, rated AA- by Agusto & Co. and Global Credit Rating, carries a two-year moratorium and will be listed on both the FMDQ Securities Exchange and the Nigerian Exchange Limited.
Chapel Hill Denham Advisory serves as the lead issuing house and bookrunner, alongside ARM Trustees, First Trustees, and Leadway Capital and Trusts Limited.
Governor Babajide Sanwo-Olu said the initiative reflects his administration’s commitment to “sustainable financing for long-term urban transformation,” ensuring Lagos remains the nation’s economic engine and Africa’s emerging megacity.