The Lagos State Government has returned to Nigeria’s domestic debt capital market with plans to raise up to N200 billion under its N1 trillion Debt and Hybrid Instruments Issuance Programme, in a renewed push to finance priority infrastructure across the State.
The bond issuance, structured as a 10-year tenor, opened for subscription on Thursday, November 6, 2025, with pricing guidance set between 16.15% and 16.25%, according to offer documents distributed by the lead issuing house, Chapel Hill Denham Advisory Services Limited.
As the lead issuing house and bookrunner, Chapel Hill Denham is coordinating the process through a book building exercise, which allows investors to submit bids indicating the volume of bonds they wish to purchase and the yield they are willing to accept. The bidding window closes on Thursday, November 13, 2025, after which the final interest rate and allocation will be determined based on market demand.
Book building is widely used in capital markets to establish fair pricing for securities by gauging real-time investor appetite. The bookrunner manages the bids, aggregates investor interest, and sets a final price that reflects prevailing market conditions.
According to Lagos State authorities, proceeds from the bond issuance will be directed toward the development of critical physical and social infrastructure, including transportation networks, housing expansion, healthcare delivery improvements, and educational facilities upgrade. The move aligns with Governor Babajide Sanwo-Olu’s THEMES+ Agenda, which prioritizes urban renewal, mobility enhancement, and inclusive social development.
Lagos—Nigeria’s leading commercial and financial hub—accounts for approximately 20% of the nation’s GDP and maintains one of the most diversified subnational economies on the continent. The State has an established track record in the Nigerian bond market, with previous issuances supporting major projects such as the Lagos Blue Line rail infrastructure, road network rehabilitation, and healthcare capacity expansion.
Market analysts note that the latest issuance comes amid a rising interest rate environment, with subnational borrowers increasingly turning to the domestic capital markets for long-term funding to bridge infrastructure gaps.
If successfully completed, the N200 billion raise is expected to accelerate the State’s ongoing capital project pipeline while reinforcing investor confidence in Lagos’ fiscal sustainability and governance framework.
