FMDQ Securities Exchange Limited has granted approval for the listing of Lagos State Government’s two bond series totaling N244.82 billion, issued as part of the state’s N1.00 trillion Debt and Hybrid Instrument Issuance Programme.
The decision was announced on February 24, 2026, following a meeting of FMDQ’s Board Listings and Markets Committee. The approved securities consist of:
– N14.82 billion 5-Year 16.00% Series 3 Fixed Rate Green Bond
– N230.00 billion 10-Year 16.25% Series 4 Fixed Rate Bond
Both tranches were originally issued in 2025 and are now formally listed on the FMDQ platform. Chapel Hill Denham Advisory Limited acted as the Registration Member (Listings) for the transaction.
FMDQ described the dual issuance as one of the largest sub-national debt capital market deals in Nigeria’s history. Proceeds from the bonds are designated to finance critical infrastructure and sustainable development initiatives across Lagos State, reinforcing its status as Africa’s leading commercial and economic hub.
The Series 3 Green Bond aligns with international green finance principles, with funds committed exclusively to eligible environmental projects. These include renewable energy initiatives, energy efficiency improvements, clean transportation systems, sustainable water and wastewater management, climate adaptation measures, and eco-friendly urban infrastructure developments.
The larger Series 4 conventional fixed-rate bond provides the state with predictable, long-term funding at a stable cost, supporting broader budgetary planning and multi-year project execution.
Lagos State’s consistent engagement with the domestic capital market underscores its strategy to mobilise long-term financing for development priorities. Previous notable issuances include a N200 billion conventional bond in November 2025 and a N137.3 billion 10-year bond in 2021, both directed toward accelerating infrastructure delivery and bridging funding shortfalls.
The latest listing strengthens Nigeria’s domestic debt capital market and signals growing adoption of thematic and sustainable financing instruments by sub-national governments. By tapping fixed-income markets, Lagos continues to demonstrate fiscal discipline while addressing pressing environmental and developmental needs.
Market participants view the transaction as a positive indicator of deepening investor appetite for high-quality sub-sovereign paper, particularly in an environment of rising infrastructure demand and increasing focus on green and climate-resilient investments across Africa’s largest economy.
