Business

Hardship: Nigerian-used car market booms as more owners sell off private vehicles

Published

3 months ago

August 9, 2025

Soaring living costs, high exchange rates, and rising import tariffs are pushing foreign-used cars out of reach for many Nigerians, with Nigerian-used cars becoming the popular option.

This trend is fuelling a boom in the Nigerian-used cars market as more buyers turn to locally pre-owned vehicles for affordability.

Findings revealed a sharp increase in vehicle listings by private owners, particularly on online marketplaces, social media platforms, and roadside car lots.

This is even as car dealers lamented the rising costs and falling demand for imported vehicles.

According to them, while foreign-used vehicles, popularly known as Tokunbo, remain popular, their prices have doubled or even tripled in the past year due to the depreciating naira and heavy import charges.

The development comes amid a significant decline in the volume of imported vehicles, following the introduction new four per cent Free On Board levy, which replaced the former one per cent Comprehensive Import Supervision Scheme charge.

The Nigerian Customs Service had earlier announced that the new levy was enshrined in the Customs Act 2023 and would serve as a major funding source for its operations, including the deployment of the B’Odogwu cargo clearance system.

NCS’s Comptroller-General, Adewale Adeniyi, said the transition from the CISS to the FOB levy was aimed at modernising the service and reducing clearance bottlenecks.

“The one per cent CISS has served the country for decades,” Adeniyi said at a recent stakeholder forum in Lagos. “But as we embrace digitisation and indigenous technology like the B’Odogwu platform, the Customs must find sustainable ways to fund these transformations.”

Nigerian-used cars market booms

Speaking with Saturday PUNCH, a dealer in Nigerian and foreign used vehicles, Nurudeen Amodu, decried the rising cost of automobiles in the country, saying the situation had also reversed the old practice of Nigerian dealers travelling to Cotonou and other neighbouring countries to buy cars.

“Back then, what we usually did in the car business was to travel to Cotonou and other neighbouring countries to bring cars because our money was valuable, but currently they come to us to buy now because our money has lost value.

“Recently we hosted some customers from Cotonou that came to buy cars, and I asked them why, they said because their money has more value now than the naira and that they would make more buying Nigerian used cars,” Amodu said.

He gave examples of price jumps in recent years: foreign used Toyota (2003–2006) models that sold for about N1.5m now cost between N8m and N10m; the Honda CR-V (2010) rose from N5m to N13m; the Lexus RX330 from N5m to N15m; and the Toyota Venza from N6m to nearly N20m.

Amodu said the sharp depreciation of the naira had pushed the prices of foreign used cars, popularly called Tokunbo, to levels comparable to, or even higher than, locally used vehicles.

“Some companies have liquidated. Imagine running a business with N100m capital and stocking vehicles for N5m each before. You could have 10 cars in stock then, but now that each costs around N15m, you can see how the business is affected.”

“What we do presently to address the situation for our customers is car swap, where we collect your old car and you add a little money to get another,” he added.

Several car dealers in Sokoto also said that they are witnessing an influx of buyers from neighboring Niger Republic, to buy Nigerian-used cars due to better pricing.

They attributed the growing trend to the relative strength of the Nigerien currency against the Nigerian naira, making Nigerian-used vehicles more affordable for Nigerien buyers.

A car dealer operating along Maiduguri Road in Sokoto, Haruna Abubakar, said the number of customers from Niger Republic had surpassed local patronage in recent times.

“I now have more customers from Niger Republic than within Nigeria,” he said. “They often buy popular models like Toyota Corolla, Camry, and Sienna. It used to be the other way around, but with the current exchange rate, they are the ones buying from us, and it is good for our business,” Abubakar said.

Another dealer, Mallam Jamiu Bello, disclosed that he had been consistently selling Nigerian-used vehicles to Nigerien nationals over the past few years.

“Many of them not only buy vehicles here, but also request Nigerian number plates,” he disclosed. “From what I understand, their laws permit them to use Nigerian plates after securing a single document, and they drive the cars like that back home.”

Bello added that it is not uncommon to find several cars in Niger Republic bearing Nigerian registration numbers, especially from Sokoto.

According to him, the development is boosting the local automobile market in Sokoto, even as economic challenges continue to affect domestic buyers.

Also speaking, a Lagos-based car seller, who only identified himself as Sam, said people now patronise Nigerian-used cars more than foreign-used ones because of the Customs duty hike and high exchange rates.

“This current situation will make it difficult for many Nigerians to get cars. Even people now sell their cars so they can eat. I bought a fairly used 2005 Toyota Corolla for N4m. Also, in Lagos State, I saw another one whose owner said it was going for N5.2m. This is because the man has issues,” he noted.

Sam added, “Not only do people from Benin Republic buy Nigerian-used cars, but people also come from Cameroon. This is because their currency is stronger. Recently, I compared the prices of a 2013 Ford Escape in Cotonou, and it is between 2.8m to 3m CFA. In Nigeria, it is being sold for N11m to N13m.”

Dealers make case for locally assembled cars

Amid the rising cost of foreign-used vehicles and dwindling import volumes, the Association of Motor Dealers of Nigeria has urged the federal and state governments to increase their support for locally assembled cars as a sustainable alternative.

The national president of the association, Ajibola Adedoyin, argued that strengthening local automobile production would not only reduce dependence on costly imports but also create jobs and stabilise vehicle prices in the long term.

Adedoyin disclosed that the association was planning to engage car manufacturers in Nigeria to produce affordable cars for average Nigerians.

He stated, “With the current prices of cars, low-income earners earning around N100,000 monthly, even if they get a loan, they will find it very difficult to pay it back. There are many other financial obligations for such individuals.

“That is why we will be on better leverage when we purchase vehicles assembled in Nigeria. But, car manufacturers in the country are not thinking of average Nigerians. They should think about producing cars that are reasonably good and suitable for our usage. Right now, they are building supersonic cars with prices far beyond the reach of common Nigerians.

“We are trying to look inwards so as to patronise our own local assemblies in Nigeria. That is why we have been trying to partner with the National Automotive Development Council to see how we can bring that to reality. We have been talking about how to make our own cars here more efficient and durable.”

Adedoyin also expressed concern over the increase in car duties, adding that the new percentage will further push imported cars out of Nigerians’ reach.

Adedoyin said, “What was introduced is an increment, because four per cent was introduced and only one per cent was removed. They said they are cancelling the one per cent levy, and now they have added four per cent. So, there is an increment of three per cent at the end of the day.

“The other seven per cent that we thought they were going to remove is not even meant for the Customs. It was meant for the Nigerian Ports Authority and others. They did not remove it.

“It is a demand and supply thing. There is no patronage like before due to the prices. If you check the level of vehicle importation, it has also dropped. Right now, on our side, we are trying to see how we can really bring in locally assembled Nigerian cars to be sold by our members, rather than importing from the USA or Canada.”

The AMDN National President noted that it would be difficult for many Nigerians to afford any car at the moment, as prices had increased outrageously.

Lamenting the havoc the price hike had wreaked, Adedoyin said that expired cars were being refurbished, leading to accidents on the roads because they were no longer roadworthy.

He said, “That is why we are advocating that we look inwards. However, this issue has affected car sales. Invariably, this problem is causing harm on our roads because when people cannot replace their old vehicles, they tend to manage them. Managing such vehicles leads to a lot of accidents.

“Cars are necessities. If the purchasing power is not increased, there will definitely be a drop in purchasing. The exchange rate is another factor affecting the importation of cars. Although the exchange rate is not determined by Nigeria, if we check the rate now, the amount we exchange for dollars has greatly increased. Some years ago, it was not like this. Today, the duty for a car is based on the amount it is purchased for in dollars.”

More Nigerians sell cars

A private car owner, Olumide Adegbola, told our correspondent that he had to sell his vehicle due to the worsening economic situation in the country.

He explained that feeding his family had become a daily struggle, making it nearly impossible to afford fuel for transportation.

“The economy has really been tough lately. I can’t even afford basic necessities,” he said. “To stay afloat, I had to sell my car to meet my family’s needs. It was a Corolla I bought a few years ago for N2,000,000, but I had to sell it for N4,000,000.”

Another car owner, identified simply as Yunusa, also shared that he sold his car as a result of financial hardship.

Recounting his experience, he said, “I lied to my client that I was travelling just so I could sell my car. I wasn’t travelling, hunger will make you do anything just to survive.

“Now, I don’t have a car, and honestly, I don’t know when I’ll be able to afford one again. Things are really hard.”

“It’s the profit that made me sell it so that I can help my family and be stable financially.”

Agents speak

Licensed Customs agents operating in the nation’s maritime sector opined that introducing the four per cent FOB levy would negatively affect vehicles and other imports.

A former Interim National President of the Association of Nigerian Licensed Customs Agents, Pius Ujubonu, told Saturday PUNCH on Friday that the policy would make the acquisition of vehicles purely luxurious.

He added that in a few months to come, vehicles would be out of reach for nearly everybody in the country.

“It is almost making the acquisition of a vehicle purely a luxurious thing. It didn’t take into consideration the necessity of transportation, because there was no exemption in the policy introduction. If it is a situation where, for example, commercial, special-purpose vehicles, among others, are exempted, it would have been a different thing. But the moment you make it a policy without any exemption, it affects several ways. In the next one or two or three, four months, vehicles will almost be out of reach for nearly everybody,” Ujubonu said.

The National Public Relations Officer of the Association of Registered Freight Forwarders of Nigeria, Mr. Taiwo Fatobilola, said, “The very moment there is an increase, it affects everything. But, the only area where we are disturbed is the seven per cent surcharge that has not been removed. Because the assurance they gave was that they were going to remove the one per cent CISS and the seven per cent surcharge. FOB is supposed to cover both that one per cent and seven per cent, but the seven per cent is still appearing on the system, so that is the only area where I feel.”

A member of the Elders Maritime Agents Association, Nnadi Ugochukwu, described the four per cent FOB as an addition to the cost of doing business.

“So, that is an addition. Many people are abandoning their goods, especially their vehicles, in the ports, because of the cost of clearing. And now they want to add more money to the cost. And when you push that to the people, it goes to the economy to cause inflation; it’s as simple as that.

“Many businesses will have to fold. But the point is that they will add the prices they sell in the market. So, of course, it will affect imports. Some people may no longer be able to travel. They just stay around and manage what they have here,” Ugochukwu said.

A member of the National Association of Government Approved Freight Forwarders, Stanley Ezenga, however, said it was too early to attribute the introduction of the four per cent FOB levy to the drop in imported vehicles.

“The thing just started, so it would be too early to judge the effect. But, no matter what, importation can never stop, and for now, it hasn’t dropped. So, we should give them like three months to see because already some products have been imported into the country that are yet to be cleared.

“To me, it won’t lead to any decline in imports; rather, it will lead to inflation because importers will add what they have spent on the goods, and it will trickle down to the final consumers,” he said.

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Business

Investors lose fresh N1.17tn as bearish trading resumes

Published

1 day ago

November 18, 2025

Newsbreak365_Admin

The equities market began the week in the red as the All-Share Index of the Nigerian Exchange fell by 1.26 per cent to close at 145,159.77 points on Monday.

The decline wiped off about N1.17tn from investors’ wealth, dragging market capitalisation down to N92.3tn.

According to market data, the downturn was driven largely by heavy sell pressure on Dangote Cement, which fell by a maximum of 10 per cent, alongside declines in tier-1 banks including Zenith Bank (-1.64 per cent), Access Holdings (-3.26 per cent), and FBN Holdings (-2.76 per cent).

Despite the negative close, market breadth stood positive, with 28 gainers outperforming 24 losers. Sovereign Insurance (+9.97 per cent) led the gainers’ chart, while Dangote Cement and Enamelware, both down 10 per cent, topped the losers’ list.

Market activity normalised after last Friday’s unusually large turnover, driven by off-market crosses in Cornerstone Insurance. Total volume traded declined sharply by 92.1 per cent to 388.2 million units, while total value traded fell by 26.3 per cent to N31.1bn. Tantalizer emerged as the most traded stock by volume with 57.1 million units, while Aradel Holdings dominated the value chart with N21.5bn worth of trades, accounting for 69 per cent of total market value. Recall that Tantalizer on Friday announced the signing of a multi-million-dollar deal with a US-based firm for a period of five years to export premium prawns and shrimps.

Trading remained largely bearish across most sectors. The InHHHdustrial Goods Index led sector declines, down 4.48 per cent, primarily due to weakness in Dangote Cement.

The Oil & Gas Index fell by 1.18 per cent with losses in Oando and Aradel, while the Banking Index dropped 1.01 per cent. The Consumer Goods Index edged down 0.02 per cent. In contrast, the Insurance Index closed positively, rising 0.07 per cent, supported by gains in Sovereign Insurance.

Cowry Asset Management, in its daily market note, attributed Monday’s downturn to profit-taking activities among investors. The firm noted that the drop in market capitalisation occurred despite the listing of 1.96 billion ordinary shares of Chams Holding via private placement, underscoring the depth of the sell pressure.

The investment house added that trading patterns reflected heightened retail activity. Although total trading volume plunged 92.64 per cent to 360.6 million units and value dropped 26.88 per cent to N30.9bn, the number of deals rose 15.83 per cent to 27,975, indicating increased participation through smaller-sized transactions.

Meanwhile, the October inflation data released by the National Bureau of Statistics indicated that Nigeria’s inflation continued its deceleration, moderating to 16.1 per cent year-on-year in October, compared with 18.0 per cent in the prior month.

This moderation was evident in the food and core baskets, which both settled at 13.1 per cent YoY and 18.7 per cent YoY, respectively (vs 16.9 per cent and 19.5 per cent in September). However, on a MoM basis, headline inflation rose by 0.9 per cent vs 0.7 per cent recorded in the prior period.

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Business

Minority investors vital for capital market growth – Sola Oni

Published

1 day ago

November 18, 2025

Newsbreak365_Admin

With more than 30 years of experience across financial journalism, capital market operations, education, and strategic communications, Sola Oni stands as a prominent figure in Nigeria’s investment landscape. A former spokesperson for the Nigerian Stock Exchange (now NGX) and a Fellow of both the Chartered Institute of Stockbrokers and the Institute of Capital Market Registrars, Oni discusses with OLUWAKEMI ABIMBOLA the importance of minority investors in market growth and other emerging developments in Nigeria’s financial sector

The capital market has witnessed several developments recently, from the transition to a T+2 settlement cycle to the recognition of digital assets such as cryptocurrency. How do you assess these changes and their implications for the market and the wider economy?

The commencement of the Central Securities Clearing System operations on 14 April 1997, established a central depository with an electronic clearing and settlement system. It began with T+5 (Transaction Day plus five working days). In 2000, CSCS advanced to T+3, the settlement cycle it has maintained to date.

Before this milestone, the Nigerian capital market relied on a manual clearing and settlement system, which was entirely paper-based. Investors were issued physical share certificates as proof of ownership, a process fraught with numerous challenges. Clearing and settlement could take weeks or even months due to manual document verification. Registrars were required to authenticate share certificates, which were physically delivered for ownership transfer and register updates.

The manual process was susceptible to theft, administrative bottlenecks, high transaction costs, reconciliation errors, fraud, and forgery. As a dynamic institution, CSCS is now set to launch a T+2 clearing and settlement cycle on 28 November. All stakeholders are prepared for this historic event, which will be inaugurated by the Securities and Exchange Commission.

The ultimate goal is to achieve T+1, which is already the standard in several advanced markets. This means that if you buy or sell securities today, payment and ownership transfer will be completed the following day. Markets such as the Toronto Stock Exchange in Canada, Bolsa Mexicana de Valores in Mexico, NSE and BSE in India, and the Shanghai and Shenzhen Stock Exchanges in China already operate this benchmark.

Let me add that T+0 is uncommon, as it requires real-time cash and securities availability. It can reduce liquidity since funds and securities are tied up immediately. Although a few markets, including China, the United States, and India, operate T+0, it is mostly limited to digital assets and certain money market instruments.

Many companies in the financial services sector are currently undergoing recapitalisation. How should minority investors position themselves to take advantage of this trend?

Minority investors, those owning less than 50 per cent of a company, are essential to every thriving capital market. Regardless of ownership size, every investor must begin with the basics: What is my investment objective? What is my risk tolerance? What is my time horizon? And what is my source of funds?

An investor who cannot answer these questions is simply taking uncalculated risks, which often end badly. As the financial services sector evolves, minority investors need to be strategic. A good starting point is understanding the investment policy of the target company and identifying growth segments with strong potential. These include undercapitalised mid-tier banks, emerging fintech firms, and high-performing insurance companies.

A minority investor’s objective should align closely with that of the target company. It is also prudent to focus on firms where recapitalisation can unlock regulatory reliefs, improve credit ratings, and strengthen growth capacity. Positioning in such companies enhances returns and provides a pathway to sustainable wealth creation. In a reform-driven and innovative market, the best opportunities often lie where growth and regulation converge in favour of investors.

Tax reforms are expected to take effect next year. What impact might these have on the capital market?

The ongoing work of the Presidential Committee on Tax and Fiscal Policy Reforms, chaired by Mr Taiwo Oyedele, is generating significant interest across Nigeria’s economic landscape. Stakeholders believe that the committee’s recommendations will have far-reaching implications for businesses, investors, and the capital market as a whole.

In the capital market, taxation is a major determinant of competitiveness. It affects corporate earnings and, by extension, shareholder returns. For foreign investors, tax policy is often a critical factor in assessing a country’s investment appeal. Key taxes that directly affect investors include Capital Gains Tax, Withholding Tax on dividends, Transaction Taxes, and Stamp Duties.

However, there are growing concerns among market participants over the proposed increase in Capital Gains Tax from 10 per cent to 30 per cent, which could discourage high-net-worth individuals, institutional investors, and foreign portfolio investors. Analysts warn that such an increase might weaken market confidence and reduce overall investment inflows.

The capital market community therefore looks to the government to consider tax incentives and relief measures that can enhance Nigeria’s global competitiveness. Stakeholders continue to engage with Mr Oyedele and his team, seeking assurance that the reforms will foster growth while preserving investor confidence. Mr Oyedele has repeatedly emphasised that the reforms aim to promote fairness, transparency, and alignment with global best practices.

As the committee’s work progresses, we in the capital market are optimistic that the outcome will have a net positive impact, boosting investor sentiment and positioning Nigeria’s capital market for sustainable growth.

How would you assess Nigeria’s progress in developing a commodities exchange ecosystem?

Nigeria’s commodities exchange ecosystem is still largely untapped but brimming with potential. Encouragingly, awareness of the benefits of commodities exchanges is growing, driven primarily by private-sector-led initiatives.

For instance, in September, the Lagos Commodities and Futures Exchange listed N23.4bn worth of Eko Rice Classic Spot Contracts, a milestone in transforming Nigeria’s agricultural and commodities sectors.
One major source of optimism is the new Investment and Securities Act (2025), which has addressed previous policy gaps and formalised the country’s commodities ecosystem. The Act has strong potential to stimulate economic growth if effectively implemented.

Nonetheless, stronger regulatory support is needed. The government should consider making it mandatory for commodity producers and exporters to use exchange platforms. This would have a multiplier effect on GDP growth and boost foreign exchange earnings. It should also create an enabling environment for private-led commodities exchanges by supporting warehousing and logistics infrastructure to reduce post-harvest losses and enhance token and receipt delivery.

With the number of minority investors on the rise, how crucial is investor education in sustaining market growth and promoting economic resilience?

Minority investors, those owning less than 50 per cent of a company’s shares, are key stakeholders in Nigeria’s capital market. Their protection and active participation are vital for building investor confidence and ensuring fair corporate governance.

Under the Companies and Allied Matters Act 2020, SEC rules, and NGX listing requirements, minority investors are entitled to several rights that protect their interests and promote accountability.

They have the right to information, ensuring access to periodic financial statements, annual reports, and corporate disclosures, as well as rights to dividends, entry and exit, and protection from oppressive conduct by majority shareholders or directors. They can attend and vote at annual and extraordinary general meetings and participate in rights issues and bonus share offers, thereby preventing unfair dilution of their holdings. In cases of dispute, they can seek legal redress, including court petitions under CAMA for oppression, mismanagement, or unfair prejudice.

These provisions reflect the joint efforts of the SEC, NGX, and the Corporate Affairs Commission to promote transparency and investor protection. When listed companies respect these rights, they strengthen corporate reputation, improve liquidity, and attract both domestic and foreign investors.

Beyond rights, minority investors serve as critical checks and balances on boards and management. Through constructive engagement, asking questions, demanding accountability, and scrutinising decisions, they help uphold governance standards. Their participation in public offers, rights issues, and private placements also deepens liquidity and supports capital formation, which ultimately strengthens the economy.
Protecting minority investors is therefore not merely a legal duty but a strategic necessity for market growth.

A transparent, equitable system that safeguards all investors will enhance confidence and position Nigeria’s capital market as a globally competitive investment destination.
How do you envision Nigeria’s capital market evolving over the next five years?

Capital market development is a marathon, not a sprint. Over the next five years, I envision a market shaped by technology, innovation, and broader participation, particularly from millennials, Gen Z, and other digital natives.
The rise of digital platforms and the introduction of innovative investment products are likely to attract tech-savvy investors, expanding market reach and liquidity. More companies are expected to tap into the capital market for long-term funding, while the government may increasingly rely on market instruments to finance infrastructure projects.

With the CSCS set to commence T+2 settlement this month, the market will become more efficient and competitive in transaction processing.

We can also anticipate significant growth in the commodities ecosystem, with private-sector-led exchanges contributing to GDP expansion and boosting the global competitiveness of Nigerian agricultural products. The Over-the-Counter Exchange, led by NASD Plc, is also poised for increased activity as new products and strategies attract retail and institutional investors.

However, these projections depend on key factors such as the faithful execution of economic reforms, adoption of emerging technologies, and full implementation of the SEC’s Capital Market Master Plan and ISA 2025. With these in place, Nigeria’s capital market could evolve into a more inclusive, innovative, and globally competitive environment.

You began your career in journalism before transitioning into capital market operations and corporate communications. How did that journey unfold?

My transition into the capital market began in 1992 when my editor at The Guardian, Mr Jide Ogundele, sent me to the library to study the Financial Times of London for two days. Until then, I had covered multiple beats, Energy, Money Market, Aviation, Insurance, and Manufacturing, often producing front-page news.

At The Guardian, excellence was non-negotiable. Readers were largely middle-class and above, so one had to be exceptional in both reporting and writing to keep the job.

My first visit to the Nigerian Stock Exchange (now NGX) in 1992 was fascinating. Journalists watched from the gallery as stockbrokers shouted bids and offers on the trading floor, a system known as the Call-Over or Open Outcry. It was a vibrant, disciplined environment where trading, price discovery, and share allocation were meticulously coordinated.

After each session, journalists compared the Exchange’s Daily Official List with their records to ensure accuracy. Our reports influenced broker decisions, sparked debate, and even moved share prices, a reflection of how much the market depended on credible reporting.

Although the Call-Over System was engaging, it was also time-consuming and dependent on the Chairman’s discretion. Covering the capital market was demanding because it required understanding the broader economy, how macroeconomic variables influenced company performance and stock prices.

In 1994, I was briefly de-accredited by The Exchange, but The Guardian stood by me. By 1997, I joined The Exchange itself, and that same year, I won the Diamond Award for Excellence in Financial Reporting. I rose to management level, led a department, and contributed significantly to the organisation’s growth.

The Exchange invested in my training, I studied at the New York Institute of Finance, trained at the U.S. SEC’s International Institute for Securities Market Development in Washington D.C., and interned at the World Bank in Chicago.

Today, I am a Fellow of both the Institute of Capital Market Registrars and the Chartered Institute of Stockbrokers, as well as a member of the Commodities Brokers Association of Nigeria and the Chartered Institute for Securities and Investment, UK.

I currently work as a public relations consultant, integrated communications strategist, and educationist, maintaining strong ties to the capital market. Journalism laid the foundation for my understanding of finance, governance, and market dynamics, skills that have shaped my entire professional journey.

If you could advise regulators and listed companies on one mindset shift, what would it be?

Both the apex regulator (SEC) and self-regulatory organisations play a crucial role in enforcing market rules and protecting investors. With rapid technological change, regulatory frameworks must evolve accordingly.

The Investment and Securities Act should be reviewed periodically to ensure that regulators stay ahead of market operators, addressing potential infractions before they escalate. Likewise, listed companies must strictly comply with post-listing requirements to maintain transparency and investor trust.

Ultimately, market growth depends on trust. Regulators and operators share responsibility for building and maintaining this trust. Regulators must enforce rules consistently, while operators, brokers, listed firms, and other participants, must act with integrity and provide accurate, timely information.

When investors are confident that the market is fair, transparent, and responsive, they are more willing to commit capital, which in turn fuels liquidity, growth, and long-term stability.

Looking back, what achievement are you most proud of in your capital market journey?

I have consistently advocated for policy reforms, highlighted structural and fiscal challenges, and promoted greater participation in the capital market through my writings and public commentary.

I am also passionate about mentoring the next generation of financial journalists, helping them to embrace accuracy, integrity, and professionalism. Through these efforts, I aim to encourage informed investing, strengthen governance, and contribute to building a more inclusive and resilient market ecosystem.

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Business

Lagos bond subscription hits N310bn

Published

1 day ago

November 18, 2025

Newsbreak365_Admin

The Lagos State Commissioner for Finance, Yomi Oluyomi, says the state has made history with the conclusion of the bookbuild for its landmark bond issuance that has recorded an overwhelming reception from the investment community.

In a statement on Monday, Oluyomi explained that the state offered a N200bn Conventional Bond and a N14.8bn Green Bond, both of which were significantly oversubscribed.

“The Conventional Bond, which is the largest ever issued by a non-corporate sub-national in Nigeria’s history, attracted subscriptions totalling N308bn, representing a 54 per cent oversubscription above the initial offer. Lagos State is the first sub-national government to issue an impact climate bond. The Green bond attracted N28.7bn – 94 per cent more than the target,” Oluyomi said.

The Lagos State Governor, Babajide Sanwo-Olu, was quoted in the statement as saying, ”This is a reflection of the global confidence in Nigeria’s economy, fostered by the bold reforms initiated by President Bola Tinubu as reflected in the recent oversubscription of the Federal Government’s Eurobond.

“In Lagos, ours is a testament to our resilience and the unwavering support of our private sector partners who believe in our vision of building Africa’s model megacity that is safe, secure, and functional,” Sanwo-Olu said.

According to him, the state shall continue to ensure prudent financial management, accountability, and fiscal transparency as it continues to provide a conducive environment for businesses to grow. “Our dream is to make Lagos a global financial hub; we will keep our eyes on the ball,” he added.

The statement pointed out that the proceeds from these Bonds are earmarked to fund critical projects across the state, directly aligned along the line of the THEMES+ Agenda of Governor Babajide Sanwo-Olu.

“These projects will focus on vital areas such as transportation, healthcare, education, and environmental sustainability, all aimed at significantly improving the livelihood and well-being of all Lagosians and securing a more prosperous and resilient future for the state,” it stated.

The “conventional bond” is a fixed-rate, long-term debt instrument issued by the Lagos State Government to raise capital from the domestic capital market.

Proceeds are used to fund infrastructure and social development projects across Lagos. Lagos State has a Debt Issuance Programme that allows it to issue bonds, notes, and other securities under a shelf registration.

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