Lagos opens N200bn bond for investors subscriptions

Lagos State Government is in the Nigerian debt market to raise up to ₦200 billion from local bond issuance under the ₦1 trillion Debt and Hybrid Instruments Issuance Programme. The offer, which opened Thursday, Nov 6, is priced between 16.15% and 16.25%, is the largest issuance by the State, and proceeds from the bond will be applied to financing priority physical and social infrastructure projects across the State.

In separate notes, Investment firms said the Offer will be executed by way of Book Build and is scheduled to close on Thursday, November 13, 2025. 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 allocation.

The state’s IGR increased by 105% to about ₦2 trillion in the year ended 31 December 2024. LASG also continues to lead in advancing and implementing the National Sustainable Development Goals. With a strong focus on infrastructure development, Lagos is fostering economic growth and strengthening its financial capacity, enabling it to attract further capital. 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 upheld by the State’s strong capacity to meet financial obligations promptly, underpinned by its good cash-generating profile and sustained access to funding lines from the domestic capital market and financial institutions.