Lagos, Nigeria – FMDQ Securities Exchange Limited has approved the listing of Lagos State Government’s dual-series bonds totaling N244.82 billion under its N1.00 trillion Debt and Hybrid Instrument Issuance Programme, marking one of the most significant sub-national debt capital market transactions in Nigeria’s history.
Okay News reports that the approval was disclosed in a release issued on Tuesday, February 24, following a meeting of its Board Listings and Markets Committee. The listing covers a N14.82 billion 5-Year 16.00 percent Series 3 Fixed Rate Green Bond and a N230.00 billion 10-Year 16.25 percent Series 4 Fixed Rate Bond. The proceeds are earmarked to address environmental challenges and infrastructure gaps in the State.
The Series 3 Fixed Rate Green Bond marks a milestone for Lagos State and Nigeria’s sustainable finance ecosystem. In alignment with global green bond standards, the issuer has committed to applying the proceeds exclusively toward eligible green projects including renewable energy, energy efficiency, clean transportation, sustainable water management, climate resilience, and environmentally responsible urban infrastructure. The Series 4 Fixed Rate Bond provides stable borrowing costs, enabling reliable financial planning and long-term budget management for the State.
The Exchange stated that the dual-series issuance, sponsored by Chapel Hill Denham Advisory Limited, will support Lagos State’s strategic programmes and reinforce its position as Africa’s premier commercial destination. The combined N244.82 billion issuance underscores the growing role of sub-national governments in mobilising long-term capital for infrastructure development and highlights the increasing adoption of green finance instruments by sub-national issuers in Nigeria.
Lagos State has maintained a strong track record of accessing Nigeria’s capital markets to fund infrastructure development. In November 2025, the State returned to the market with a N200 billion conventional bond offer to finance priority projects. In 2021, it issued a N137.3 billion 10-year bond to support long-term infrastructure delivery. These issuances reflect Lagos State’s continued reliance on the domestic bond market to finance large-scale infrastructure and sustainability-focused projects, reinforcing its leadership among sub-national issuers. The successful green bond listing demonstrates growing investor appetite for environmentally responsible investments. This green bond issuance sets a precedent for other states seeking to finance sustainable development through capital markets.
