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The Lagos State government is in the process of raising a N200 billion ($133 million) bond to help fund various infrastructure projects in the State, including access roads for the Lekki-Epe Airport, as well as the Blue and Red light rail lines.
Lagos State Government had earlier established and registered its One Trillion Naira Debt and Hybrid Instruments Issuance Programme by way of a Shelf Prospectus dated May 23, 2023.
Further to this Programme, the State is embarking on the Series IV issuance of up to N200,000,000,000 (Two Hundred Billion Naira) 10 Year Fixed Rate Bonds due 2035, with a coupon of 16.25%.
From the N200 billion raised (less transaction costs) about N195.46 billion will be allocated to projects in various Ministries, Departments and Agencies (MDA’s) including: office of Drainage and Water Resources which gets N12.98 billion, Lagos Water Corporation N12.98 billion, Ministry of Housing N9.3 billion, Ministry of Health N17.3 billion and Lagos Metropolitan Area Transport Authority (LAMATA) N56.2 billion.
Others are Office of Infrastructure N64.9 billion, Ministry of Innovation, Science & Technology N2.1 billion, Ministry of Agriculture N12.9 billion and Ministry of Waterfront Infrastructure Development N6.4 billion.
Major Projects to be Funded by Lagos N200bn Bond
Some of the major projects to be funded from the bond proceeds by the MDAs are: construction of the Lagos Rail Mass Transit Blue Line from Mile-2 to Okokomaiko (Section 2) which will get N34.6 billion from the bond proceeds, Lagos Rail Mass Transit Red Line from Oyingbo to National Theatre to receive N21.6 billion, Eleko to Abraham Adesanya Road N12.98 billion, Ibeshe Housing Scheme Phase 2, N3 billion and construction of 280 bed General Hospital in Ojo to receive N4.329 billion.
Dredging of Ikota River will get N10.48 billion, construction of Adiyan Phase II water treatment project is allocated N11.25 billion, LagosHoms Sangotedo II N2.16 billion, completion of Epe housing scheme N692.6 million.
Others are construction of the Omu Creek and Bridge N21.64 billion which is expected to bring it to 61% completion in 18 months, Lekki-Epe Airport Road, phase 1 (site clearance, land reclamation) N8.65 billion to help bring it to 4% completion, over the next 18 months and establishment of another Agro food hub to be funded with N12.98 billion from the bond proceeds.
The Lagos State Government in February 2025, signed a Memorandum of Understanding (MoU) with the Summa Group, to develop and construct the Lekki-Epe International Airport.
Lagos State earned total operating revenue of N2.3 trillion in 2024, while total operating expenses and other expenses such as capital expenditure, FX losses and depreciation came in at N2.15 trillion, leading to a surplus of N168 billion for the period.
Chapel Hill Denham is the Lead Issuing House and Book Runner for the Offer.
See Full Projects List Below
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