The Lagos State Government has announced plans to issue new bonds to support infrastructure development and promote environmental sustainability, as part of efforts to meet the growing needs of the State’s population.

This was disclosed by the Commissioner for Finance, Mr. Abayomi Oluyomi, during the Ministerial Press Briefing held to commemorate the second anniversary of Governor Babajide Sanwo-Olu’s second term in office.

Oluyomi stated that the bond issuance is part of the administration’s broader strategy to explore alternative financing options for the sustainable provision of critical infrastructure.

He revealed that the government plans to issue a ₦200 billion conventional bond, targeted at funding 33 infrastructure projects across nine key Ministries, Departments, and Agencies (MDAs).

These include the Ministries of Housing, Health, Environment, Agriculture, Transportation, and Innovation, Science and Technology.

In a significant development, Lagos will also issue a ₦14.815 billion green bond—the first of its kind by a sub-national government in Nigeria. Proceeds from the green bond will fund environmentally sustainable initiatives, including renewable energy projects, climate change adaptation, and sustainable water and wastewater management systems.

The Commissioner praised the Lagos State Debt Management Office (DMO) for its effective oversight and management of the state’s debt portfolio.

He noted that Lagos has maintained a debt-service-to-revenue ratio of 19.2%, which has earned the state an A1+ local credit rating and a reaffirmed AAA rating from Fitch Ratings.

Oluyomi attributed these ratings to prudent fiscal management and the DMO’s outstanding performance.

He further disclosed that the state has appointed the required parties to lead the bond issuance programme and is in the process of securing approvals from all relevant regulatory authorities.