Lagos raises N445bn from capital market to fund rail extension, hospitals

The Lagos State Government has raised a total of N445 billion through two bond issuances in the capital market to finance major infrastructure and development projects across the state. Governor Babajide Sanwo-Olu disclosed the figure on Wednesday during the 30th Annual Stockbrokers' Conference held in Victoria Island, Lagos. (Photo: Victoria Island skyline, file photo.)

Two issuances, oversubscribed by investors

Sanwo-Olu said the state raised N230 billion through conventional and green bonds in November 2025, making it the largest sub-national bond issuance at the time. The government successfully raised another N215 billion last month after investors oversubscribed its initial N200 billion target. The strong investor response demonstrated confidence in Lagos State and its ability to attract funding from the capital market, he said.

Where the money goes

The funds are being channelled into several projects, including the extension of the Lagos Rail Mass Transit Blue Line from Okokomaiko to Trade Fair, which is expected to include four additional stations; the completion and equipping of the 280-bed Ojo Specialist Hospital, including accommodation for medical personnel; and the 180-bed New Massey Children's Hospital. The state is also constructing the Omu Creek Bridge in Sangotedo to open up investment opportunities in an area with approximately 5,000 hectares of uncultivated land.

Capital market grew fivefold in four years

Speaking on developments in Nigeria's capital market, Sanwo-Olu noted that its market capitalisation had increased from N32 trillion to more than N160 trillion within four years, and could reach N200 trillion by the first quarter of 2027. He pledged the state government's support for the N5 billion endowment fund established by the Chartered Institute of Stockbrokers to develop the skills needed to drive the digitisation of Nigeria's capital market. He urged stakeholders to make capital market funding more accessible to other state governments to promote balanced economic growth, and advocated innovative financial products, particularly tokenisation, to attract young technology-driven entrepreneurs into the investment market.

(Sources: Apples Bite; Abuja Politico, November 5, 2026.)