Lagos State has unveiled an ambitious asset securitization program designed to unlock private capital, revitalize dormant public assets and bridge the state’s estimated N20 trillion infrastructure gap.
In what is poised to become one of Africa’s most significant sub-national financing models, the Lagos State Commissioner for Finance, Abayomi Oluyomi, who disclosed the plan in an interview, said the initiative marks a major shift in how Lagos intends to fund development, noting that traditional budgets and borrowing can no longer support the needs of a fast-growing megacity.
According to him, more than 300 state-owned assets have already been identified and structured for the program, which will package selected assets into investment portfolios managed through a Special Purpose Vehicle (SPV).
The arrangement allows Lagos to raise substantial capital without becoming a direct debtor, thereby protecting its debt sustainability ratios.
Oluyomi said the framework also introduces the possibility of tokenised, fractional digital investment, allowing ordinary Lagos residents to buy into state-backed projects.
It was gathered that the scale of the exercise could reshape the country’s financial landscape.
While securitisation is not new in Nigeria, it has largely been used by private firms and federal agencies; Lagos’ entry, they argue, signals a turning point that could ripple across other states and the continent.
The Commissioner noted that Lagos has a track record of pioneering sub-national financing tools, citing its N14.8 billion Green Bond, the first sub-sovereign climate bond in Africa and its oversubscribed N230 billion bond issuance.
Beyond major infrastructure, the securitisation model is expected to free up fiscal space for MSMEs, youth entrepreneurship, skills development and grassroots economic programmes, he said.
Dormant state assets including unused land, abandoned buildings and older state facilities will be converted into logistics hubs, tech parks and commercial centres through concession partnerships with private developers.
Oluyomi added that flagship projects such as the Fourth Mainland Bridge stand to benefit from the fresh liquidity that the programme will unlock.
However, he stressed that a programme of this scale requires rigorous adherence to regulatory and governance standards, including clear asset documentation, strong legal structures, bankruptcy protections, credit enhancements and independent ratings from SEC-approved agencies. Transparency, he emphasised, will be critical to maintaining investor confidence.
The Commissioner predicted that securitisation will become a mainstream tool for state-level financing by 2026.
“The biggest lesson is to think creatively and leverage every possible resource,” he said.