Lagos Government Sells N200bn Series 5 Bond for 16.75%

By Aduragbemi Omiyale

The Lagos State government has opened for subscription its Series 5 bond sales of up to N200 billion, through a book-building process ranging from 16.50 per cent to 16.75 per cent.

The exercise commenced on Friday, October 9, 2026, and will close on Friday, October 16, 2026.

The commercial nerve centre of Nigeria is selling the debt instrument under its N1 trillion Debt and Hybrid Instruments Issuance Programme.

The sub-national is raising the funds to finance priority physical infrastructure projects across the metropolis, including ongoing hospital construction projects under the Ministry of Health, the Lagos Metropolitan Area Transport Authority’s Blue Line rail development, and the Omu Creek Bridge project under the Office of Infrastructure.

The 10-year paper has a 36-month moratorium, with a minimum subscription of N5 million comprising 5,000 units at N1,000 per unit.

Business Post reports that after the bond sale, the notes would be listed on the Nigerian Exchange (NGX) Limited and the FMDQ Securities Exchange.

Lagos contributes about 20 per cent of national gross domestic product (GDP). Its diversified economy, broad tax base and strong internally generated revenue (IGR) provide a solid financial foundation, with IGR accounting for over 68 per cent of total revenue on average over the past three years, according to Futureview Research.

The state continues to prioritise infrastructure development and sustainable economic growth.

Lagos State is rated Aa- by Agusto & Co. and AA by GCR. These ratings reflect its resilient and diversified economy, strong revenue-generating capacity, limited reliance on federal allocations, prudent expenditure management, sustained investment in infrastructure and social services, and demonstrated capacity to meet its financial obligations.