Olaniwun Ajayi LP acted as Joint Solicitor to the Lagos State Government on two bond issuances. Both closed successfully.
The first raised NGN14.82 billion through Series 3 Green Bonds. The second raised NGN230 billion through Series 4 Conventional Bonds. Both sit under the Lagos State NGN1 Trillion Debt and Hybrid Instruments Issuance Programme.
A record subnational issuance
The Series 4 bonds set two records. They are the largest single bond issuance Lagos State has ever undertaken. They are also the largest subnational bond issuance in Nigeria’s history.
The money has a clear destination. Proceeds from the conventional bond will fund critical infrastructure and social projects across the State.
A first for African subnationals
The Series 3 Green Bonds break new ground too. No African subnational entity had issued green bonds of this kind before.
Green bonds carry a use-of-proceeds commitment, which distinguishes them from conventional debt. Here the proceeds go towards projects advancing the State’s shift to a low carbon, climate resilient and environmentally sustainable economy.
Two frameworks guide that shift. The first is the Lagos State Climate Action Plan. The second is Nigeria’s Nationally Determined Contributions under the Paris Agreement.
Why the transactions matter
Subnational borrowing at this scale changes what states can attempt. Lagos can now fund infrastructure directly from the capital market rather than waiting on federal allocations.
The green tranche matters for a different reason. It gives Nigerian climate projects a route to dedicated capital, and it gives investors a way to fund them with a defined environmental purpose. Our note on the operationalisation of the Nigerian carbon market sets out the wider climate finance picture, and our work on the NGN4 trillion power sector issuance reflects the same growth in domestic capital raising.
These landmark transactions underscore our continued commitment to economic and sustainable development in Lagos State and across Nigeria.
To discuss a debt issuance programme or a green bond framework, please contact our capital markets team.