The Lagos State Government has sought the approval of the State House of Assembly to issue a N200 billion bond to finance key infrastructure projects across the state. The request was presented in separate letters from the Commissioner for Finance, Mr. Abayomi Oluyomi, which were read during Tuesday’s plenary, according to the News Agency of Nigeria (NAN). According to the commissioner, the proposed bond, which forms part of the state’s N1 trillion Debt and Hybrid Instruments Issuance Programme, will finance priority projects including the New Massey Children’s Hospital, Lagos Island General Hospital, the Lagos Rail Mass Transit Line, Omu Creek Bridge and other strategic infrastructure projects. What they are saying The Commissioner for Finance, Mr. Abayomi Oluyomi, sought legislative approval for the proposed N200 billion Series V bond, saying the proceeds would be used to finance critical infrastructure and capital projects across the state. The request was contained in one of two letters presented to the House during plenary on Tuesday.
“The Lagos State House of Assembly on Tuesday received two requests from the state government seeking legislative approval for a proposed N200 billion bond issuance and FAAC-backed initiative to finance infrastructure”. “The requests were contained in separate letters from the Commissioner for Finance, Mr.
Abayomi Oluyomi, and read during plenary by the Clerk of the House, Mrs. Adenike Oshinowo, before lawmakers.”
The commissioner said the projects earmarked for funding include the New Massey Children’s Hospital, Lagos Island General Hospital, the Lagos Rail Mass Transit Line, Omu Creek Bridge and other strategic infrastructure initiatives. More insights In a separate request, the commissioner also sought approval for Lagos State to participate in the Federation Account Allocation Committee (FAAC) Receivables Discounting Programme under the Lagos State Infrastructure Finance Fund.
According to Oluyomi, the initiative would allow the state to leverage future FAAC allocations to access about $17 million in third-party funding, providing immediate liquidity for infrastructure development and other capital projects. He noted that participation in the programme requires a formal resolution of the House of Assembly. He said the approval would support the implementation of critical infrastructure projects aimed at accelerating development across the state. Oluyomi assured lawmakers that the state government would ensure prudent financial management and sustainable infrastructure development in executing the proposed projects. Speaker Mudashiru Obasa subsequently referred both requests to the Joint Committee on Economic Planning and Budget and the Committee on Finance for detailed scrutiny, directing the panels to submit their report on Thursday.
Get up to speed Lagos State has maintained a consistent presence in Nigeria’s domestic debt market, using bond issuances to finance major infrastructure projects across the state. The state debuted its first N15 billion floating-rate bond in 2002, becoming the first subnational government in Nigeria to access Nigeria’s domestic capital market. It subsequently raised N80 billion in 2012, issued an N87.5 billion Series II bond in 2017 and floated a N137.3 billion bond in 2020 under larger multi-series debt programmes. According to the Lagos State Government, the previous bond issuances have either been fully repaid or remain performing, reinforcing the state’s track record in the domestic debt market.
In November 2025, Lagos returned to the domestic market with plans to raise up to N200 billion through a 10-year bond under its N1 trillion Debt and Hybrid Instruments Issuance Programme to finance infrastructure projects
What you should know The proposed bond comes as Lagos continues to expand its Lagos Rail Mass Transit (LRMT) network, with rail infrastructure among the projects expected to benefit from the financing. The 27-kilometre Blue Line is being developed from Marina to Okokomaiko. Its first 13-kilometre phase between Marina and Mile 2 has been operational since September 2023, while construction is ongoing on the 14-kilometre second phase to Okokomaiko. The 37-kilometre Red Line is designed to run from Agbado in Ogun State to Marina in Lagos.
Commercial operations currently cover the first 27-kilometre phase between Agbado and Oyingbo, while construction has commenced on the final phase extending the line to Marina. Lagos is also preparing to commence construction of the 68-kilometre Green Line, a proposed rail corridor linking Marina to the Lekki Free Zone.
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The estimated $3 billion project is being developed in partnership with the Ministry of Finance Incorporated (MOFI) and China Harbour Engineering Company (CHEC). To support the Green Line, the Federal Government earmarked N146.14 billion as counterpart funding in the 2025 budget and proposed an additional N102.3 billion in the 2026 budget. The Blue, Red and Green lines form part of the Lagos Strategic Transport Master Plan, which has been expanded from six to 11 rail lines and one monorail as the state seeks to build an integrated urban rail network and reduce road congestion across the metropolis.
