In one of the most significant sub-national capital market transactions in Nigeria’s history, the Lagos State Government has secured approval to list N244.82 billion in Green and Fixed Rate Bonds on the FMDQ Securities Exchange Limited platform, reinforcing its leadership in sustainable finance and infrastructure funding.
The dual-series approval, granted by the Exchange’s Board Listings and Markets Committee, covers a N14.82 billion 5-Year 16.00 per cent Series 3 Fixed Rate Green Bond and a N230.00 billion 10-Year 16.25 per cent Series 4 Fixed Rate Bond.
Both issuances are under the state’s N1.00 trillion Debt and Hybrid Instrument Issuance Programme.
The transaction marks a milestone for Nigeria’s debt capital market and further strengthens FMDQ Exchange’s role as a premier platform for sovereign and sub-sovereign entities seeking transparent and efficient access to long-term capital.
Recognised as Nigeria’s commercial nerve centre and one of Africa’s largest subnational economies, Lagos State accounts for roughly 30 per cent of Nigeria’s Gross Domestic Product and is home to over 20 million residents.
With the largest concentration of businesses and financial institutions in the country, the state’s ability to raise long-term capital is considered both a local priority and a national economic imperative.
Proceeds from the bond issuance, sponsored by Chapel Hill Denham Advisory Limited, a Registration Member (Listings) of FMDQ Exchange, will be channelled toward critical infrastructure projects, sustainable development initiatives, and strategic programmes aimed at improving living standards and sustaining Lagos’ position as Africa’s premier commercial destination.
The Series 3 Green Bond represents a significant advancement in Nigeria’s sustainable finance ecosystem.
In line with global green bond standards, Lagos State has committed to deploying proceeds exclusively to environmentally responsible projects, including renewable energy, energy efficiency, clean transportation, sustainable water management, climate resilience, and green urban infrastructure.
Market analysts say the issuance further positions Lagos as a pacesetter among African subnational governments leveraging green finance to tackle environmental challenges and infrastructure deficits.
Meanwhile, the 10-Year Series 4 Fixed Rate Bond provides the state with stable borrowing costs, strengthening long-term financial planning and budget management amid evolving macroeconomic conditions.
For FMDQ Exchange, the landmark approval underscores its expanding influence in Nigeria’s financial markets and its commitment to promoting sustainable finance. As part of FMDQ Group PLC, Africa’s first vertically integrated financial market infrastructure group, the Exchange continues to enhance transparency, innovation, and efficiency across Nigeria’s debt capital markets.
Through initiatives such as the FMDQ Green Exchange platform, the Group has positioned itself at the forefront of Africa’s transition toward sustainable capital raising.
With this N244.82 billion dual issuance, Lagos State not only deepens its footprint in the domestic debt market but also sends a strong signal to investors about its commitment to responsible financing, environmental stewardship, and long-term economic resilience.