Lagos Government Raises Bond for N137.3b Lekki-Epe, Ikorodu Roads

Lagos Governor Babajide Sanwo-Olu signed an N137.3 billion 10-year bond to raise cash for major infrastructure projects.

On Monday, the governor presided over a ceremony in which the state's attorney general, issuing parties, and fund trustees signed relevant documents required by the Securities and Exchange Commission (SEC) to permit the issuance of a 13 percent fixed-rate bond.


The occasion also marked the third time the Lagos Government would issue a 10-year bond (2021-2031), raising the total value of the Lagos State's Series IV N500 Billion Debt Issuance Programme to N377.715 billion.

The government wanted to raise N125 billion from the capital market, but the bids were oversubscribed, resulting in a total of N137.3 billion.

"Lagos once again marks another milestone in the domestic debt capital markets, with the issuance of the largest bond ever by a sub-national Government in Nigeria,” the governor said.

“The signing ceremony finalises the issuance of N137.3 billion bond at 13 percent fixed rate in our Series IV Bond Issuance under the N500 Billion Fourth Debt Issuance Programme.

“We set out to raise up to N125 billion, but we closed the book with bids totalling N137.3 billion. This is a strong response from the investing community to our administration’s debut bond issuance.

The bond, according to the governor, will be used to fund infrastructure initiatives in the areas of healthcare, the environment, and road building.

According to Sanwo-Olu, the improvements will improve people' quality of life and create a conducive atmosphere for commercial and economic operations.

"In line with our vision to build a Greater Lagos, proceeds from this bond will be used to finance infrastructure projects, primarily in roads, environment, and healthcare,” he added.

“These projects include 10-km regional road in Eti Osa, six-lane Lekki-Epe expressway, Ijeododo Road in Alimosho, and Oba Sekumade Road in Ikorodu.

“These will contribute to a better quality of living for our people, while also creating a more enabling environment for commercial and economic activity.”

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