The Lagos State government announced on Friday plans to raise N214.8 billion through bonds within five days.

This was made public during a bond issuance event, titled “Investment Forum and Engagement with Mr. Governor,” organised by the Lagos State Ministry of Finance and the Debt Management Office (DMO) in Lagos.

Lagos State Governor, Mr Babajide Sanwo-Olu, who spoke passionately about bridging the state’s infrastructure deficit gap, said that the N214.8 billion is small, especially when considering inflation, the exchange rate, the rising cost of projects, and the infrastructure gaps in the state.

He revealed that the cost of projects has more than doubled compared to what the state government usually spends on the same project four to five years ago.

The total bond issuance, amounting to N214.8 billion, is divided into two categories: N200 billion in 10-year bonds aimed at 24 infrastructure projects across nine ministries, departments, and agencies (MDAs).

The MDAs include housing, health, environment, agriculture, transportation, and innovation, science & technology. The second bond is a N14.815 billion green bond.

The governor said it is the first of its kind by a sub-national government in Nigeria, and the state government undertook this initiative after several efforts to raise green bonds internationally did not materialise.

Sanwo-Olu stated that the green bond proceeds will be utilised for environmentally sustainable initiatives, including renewable energy, climate change adaptation, and sustainable water and wastewater management.

Also speaking at the event, the CEO of ChapelHill Denham, Bolaji Balogun, the lead issuing house, said that they hope to close the deals within five days and make the proceeds from the bond issuance to the state government within the next two weeks.

“Lagos is first among peoples, among the sub nationals, not only in this country, but on this continent, that we feel confident pushing the envelope and asking the investing markets to work with us to raise 200 billion naira of capital,” he said.