LASG to Issue New Bonds for Infrastructure and Sustainability

The Lagos State Government is set to issue a new series of bonds to fund infrastructure development and promote environmental sustainability, according to the Commissioner for Finance, Mr. Abayomi Oluyomi. He made this announcement during the Ministerial Press Briefing to mark the second anniversary of Governor Babajide Sanwo-Olu’s second term in office.

Oluyomi explained that the bond issuance is part of the administration’s strategy to explore alternative financing options for the sustainable provision of infrastructure to meet the needs of Lagos State’s rapidly growing population.

The Commissioner revealed that the government plans to issue a ₦200 billion conventional bond targeted at 33 infrastructure projects across nine Ministries, Departments, and Agencies (MDAs). These MDAs include Housing, Health, Environment, Agriculture, Transportation, and Innovation, Science & Technology.

In addition, the state will issue a ₦14.815 billion green bond—the first of its kind by a sub-national government in Nigeria. The proceeds from the green bond will be channeled into environmentally sustainable initiatives such as renewable energy, climate change adaptation, and sustainable water and wastewater management.

Oluyomi commended the Debt Management Office (DMO) for its effective handling of the state's debt portfolio. He noted that the state has maintained a Debt-Service-to-Revenue ratio of 19.2%, earning it a local credit rating of A1+ and a reaffirmed AAA rating from Fitch Ratings. He attributed these strong ratings to the DMO's excellent performance.

Furthermore, the Commissioner disclosed that the State appointed the necessary parties to drive the Bond Issuance programme process with a view to get approval of all the Regulatory authorities