Article Summary

  • Lagos state has raised N134.8 billion long tenure bonds for electricity and other sectors.
  • Prior to this time, Governor Sanwo-Olu pledged to maximize the constitutional amendment granting states the power to generate, transmit and distribute electricity, to develop the Lagos Electricity Market.
  • In the medium term, the Lagos Electricity Market will be credible, commercially oriented, technically compliant, well-funded and financially feasible by 31 December 2023.

Lagos state has raised N134.8 billion in long-tenure bonds for infrastructural projects in electricity and other sectors.

This is according to the state Governor Babajide Sanwo-Olu. He made the announcement late Tuesday night, May 23 via his official Twitter account.

According to Governor Sanwo-Olu, the investment will boost the short- and long-term development of key sectors in Lagos state. He wrote:

  • “We have raised N134.8 billion in long-tenure bonds, marking another record in accessing capital market funds. This investment will fuel key infrastructure projects in sectors such as education, electricity, roads, and agriculture.
  • “Today, we signed the transaction instruments for the first sets of allotment in the N1 trillion Debt and Hybrid Issuance Programme. This includes a 10-year tenure bond and a Shariah-compliant Sukuk.
  • “With the proceeds from the bond and Sukuk, we will be executing various projects pre-inspected by the Securities and Exchange Commission. This includes overhauling 33 public schools in Ajegunle, road infrastructure on the Lekki-Epe corridor, drainage works, and more.

Sanwo-Olu explained that Lagos has secured significant investments to drive infrastructure development, spur economic growth, generate employment, and improve the lives of its residents. This successful bond issuance highlights the city’s resilience, and the confidence investors have in its ability to responsibly utilize funds for development.

The government expresses gratitude to the investors for their belief in Lagos’ tremendous potential and reaffirms its commitment to transparency and sound financial decisions, all aimed at building a Greater Lagos for future generations.

Important goals in the Lagos electricity sector

A while ago, Nairametrics reported that Governor Sanwo-Olu announced that his administration would launch an Electricity Policy, publish their off-grid strategy, present an Integrated Resource Plan, and draft a law to establish the Lagos Electricity Market.

Governor Sanwo-Olu has pledged to achieve 1 gigawatt (GW) of solar energy in Lagos by 2030 and has engaged with the World Bank for suitable funding. He intends to enable the potential of Lagos state as Africa’s model mega city through the creation of the Lagos Electricity Market.

What you should know

The Lagos state electricity plan intends to provide a background to improving the efficiency and reliability of power supply in the state. It also sets out to license all electricity markets in the state to create a regulatory framework.

In the medium term, the Lagos Electricity Market will be credible, commercially oriented, technically compliant, well-funded and financially feasible by 31 December 2023. The state plans to have an annual growth of at least 30% and 75% in the capacity and reliability of electricity in the state.

Also, within 5 years, the state’s electricity should witness growth from 1000 megawatts (MW) and 1200MW/h in 2022 to 4,500MW and 81,000MW/h by 2028.

In the long term, Lagos state expects that by the end of 2036, residents will have a reliable and constant power supply. Also, the electricity sector in the state will be diversified, sustainable and able to meet the demands of residents.