Lagos to raise N200bn from stock market via State Bond 

Lagos State Government is planning to issue a ₦200 billion bond for investor subscription under the ₦1 trillion Debt and Hybrid Instruments Issuance Programme, investment firm Comercio Partners Capital Limited said in an advisory note to investors.

The state is scheduled to launch its series 5 bond issuance of up to ₦200 billion, the firm revealed in a note shared with investor clients.

“Lagos State is Nigeria’s commercial and economic hub, with a diverse and resilient economy contributing approximately 20% of the national 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 allocations.

“The State has averaged an IGR-to-total revenue ratio above 68% 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”, Comercio told investors. The investment firm hinted that Lagos will use the proceeds from the Series 5 Bond to finance priority infrastructure projects across the State.

Identified projects include ongoing hospital constructions under the Ministry of Health, the Lagos Metropolitan Area Transport Authority’s Blue Line rail development, and the Office of Infrastructure’s works on the Omu Creek Bridge.

Lagos State is rated Aa- by Agusto & Co. and AA by GCR. The ratings reflect the State’s robust and well-diversified economy, which supports strong internally generated revenue (IGR) and financial autonomy with limited reliance on federal transfers.

The assigned ratings are further supported by LASG’s acceptable expenditure structure, characterised by sustained capital investments in infrastructure and social services, alongside effective control of recurrent costs.

In addition, the ratings are supported by the State’s strong capacity to meet its financial obligations promptly, underpinned by its strong cash-generating profile and sustained access to funding lines from the domestic capital market and financial institutions, Comercio said.