Lagos govt targets social, diaspora, green bonds to fund mega projects

…Says debt financing remains critical to Lagos growth

…Eyes diaspora remittances, impact investments

By Sodiq Adelakun

The Lagos State Government on Friday unveiled plans to deepen its bond market by introducing social, diaspora, and green bonds to fund infrastructure and social projects.

Speaking at the Bond Stakeholders and Investors Forum in Ikeja, the Commissioner for Finance, Mr. Abayomi Oluyomi said debt financing had become indispensable to meeting Lagos’ rising demands.

He Stressed that innovative financing remained crucial for roads, housing, healthcare, energy and transport.

Also, he reminded stakeholders that Lagos pioneered subnational bonds in Nigeria with a N30 million revenue bond in 1987 for the Lekki Peninsula Scheme 1.

“Fast forward to today, the Lekki corridor is an economic powerhouse proof of what financing can deliver when done right,” he said.

The Commissioner highlighted projects already funded through bonds, including the Lekki Deep Seaport, expected to contribute over $8 billion annually to Nigeria’s GDP for 45 years, the Blue and Red Rail Lines that have carried over two million passengers since launch, and ongoing housing and bus expansion schemes.

He called for a shift towards impact-driven investments.

In his words, “Social Bonds will allow us to fund affordable housing, healthcare and education. Diaspora Bonds will tap into the patriotic spirit of over 17 million Nigerians abroad who send home more than $20 billion annually. What if a fraction of that is channelled into Lagos infrastructure?”

On climate threats, he added: “Environmental Impact Bonds, or green bonds, are no longer novel. Lagos must be the first state to issue a green bond. With our vulnerability to flooding, rising sea levels and pollution, we must leverage this tool to build a resilient city.”

The Commissioner assured stakeholders that transparency and accountability would remain central.

“Every kobo borrowed must work efficiently for Lagosians,” he pledged.

He concluded by thanking investors for their role in the Lagos success story, declaring: “This gathering is not just another talk-show. It is about shaping the future of our state.”