Lagos State Government launches N200 billion bond offer

The Lagos State Government has initiated its Series 5 Fixed Rate Bond offer, aiming to raise up to N200 billion as part of its N1 trillion Debt and Hybrid Instruments Issuance Programme. The offer opened on October 9, 2026, and will close on October 16, 2026.

It will be priced through book building, with an indicative coupon guidance of 16.50%–16.75% per annum. Proceeds from this bond will finance priority infrastructure projects, including the Blue Line rail extension, hospital construction, and the Omu Creek Road and bridge project.

Lagos, as Nigeria’s commercial and financial hub, generated N1.85 trillion in internally generated revenue (IGR) in 2025, reflecting a 19.7% increase from N1.55 trillion in 2024. The bond issuance follows a previous N244.82 billion dual bond transaction in November 2025.

The proposed allocation for the current bond directs N122.16 billion, or 61.1% of gross proceeds, towards the Blue Line rail development. Principal repayments will begin after a three-year moratorium and continue semi-annually over the remaining seven years.