The government of Lagos State has announced a return to the domestic capital markets with a planned issuance of up to ₦200 billion under its ₦1 trillion Debt & Hybrid Instruments Issuance Programme. The ten-year bonds, which opened for subscription on 6 November 2025, are priced in the range of 16.15%–16.25% according to documents circulated by lead issuing house Chapel Hill Denham Advisory Services.
Proceeds from the bonds will be directed toward major physical and social infrastructure in Lagos, including transportation networks, housing programmes, education and healthcare facilities in line with the governor’s THEMES+ development agenda.
Lagos’ fiscal credentials underpin investor confidence in the issue. The state’s internally-generated revenue surged by 105% to nearly ₦2 trillion in the year ended December 31, 2024, demonstrating a strong capacity to service debts from its own revenue base. Credit ratings from agencies also reflect this strength: rated Aa- by Agusto & Co and AA- by GCR Ratings.
Since its debut issuing of a ₦15 billion floating-rate bond in 2002, the first by a Nigerian sub-national government, Lagos has accessed the bond market repeatedly (₦80 billion in 2012, ₦87.5 billion in 2017, ₦137.3 billion in 2020) and has a track record of timely repayments and performance.
The book-building process runs until 13 November 2025, during which the underwriter will collect bids from investors to determine the final pricing and allocation.
By choosing a sub-national bond route, Lagos taps deeper domestic investor pools and aids development financing while diversifying Nigeria’s debt profile. The issuance signals confidence in local‐currency borrowing, strengthening the size and sophistication of Nigeria’s sub-national debt market and helping fund infrastructure critical to sustaining the country’s GDP growth.
