Lagos is major beneficiary of unprecedented growth of capital market — Sanwo-Olu

Lagos State has gained substantially from the capital market’s unprecedented expansion witnessed over the last four years, Governor Babajide Sanwo-Olu told stockbrokers on Wednesday.

The Governor said resources sourced from the capital markets had been allocated to fund various infrastructure projects being undertaken by his administration, including the Phase II of the Lagos Rail Mass Transit (LMRT) Blue Line and development of 280-bed Specialist Hospital in Ojo.

Sanwo-Olu, who spoke at the 30th Annual Stockbrokers’ Conference held at Harbour Point, Victoria Island, said the stock market recorded unprecedented growth from N32 trillion to over N160 trillion within four years, adding that the market was projected to grow to N200 trillion by first quarter of the coming year.

The event with the theme: “From Capital Mobilised to Prosperity Realised: Financing Nigeria’s Next Era of Growth and Global Competitiveness”, was organised by Chartered Institute of Stockbrokers.

The size of the capital market, the Governor said, should not be the end result for the stakeholders. The end point, Sanwo-Olu said, should focus on how to introduce more innovative products, while maintaining the integrity of the market.

Sanwo-Olu said the market’s growing capital should be deepened and made accessible to other sub-national entities to unlock even and organic development across the federation.

He said: “As a Government, we have benefited from the growth of the stock market with the support of the Chartered Institute of Stockbrokers. Last November, Lagos raised the highest sub-national bond at N230 billion in conventional and Green bonds. Some of the proceeds of these bonds are products of many projects people see today in Lagos. Last month, we closed another bond where we wanted to raise about N200 billion from the capital market. But we exceeded the subscription, pushing us to raise N215 billion.

In our 2026 Budget of Prosperity, some of the key items outlined to accomplish are our legacy projects. The proceeds realised from the bond have been deployed to advance the construction of the Blue Line to Trade Fair from Okokomaiko, adding four additional stations. In Ojo, we are building one of the largest medical facilities, the Ojo Specialist Hospital.

The proceeds from this bond are going towards completion and equipping of the 280-bed hospital with accommodation facilities for the medical personnel that will be recruited to manage it.

The 180-bed New Massey Children’s Hospital being constructed is also benefiting from the proceeds of the bond. In Sangotedo, we are currently constructing a bridge called Omu Creek that will advance investment into that part of Lagos with uncultivated 5,000 hectares. While

Lagos has greatly benefited from the stock market’s growth, the growth should be deepened to support and activate development projects across the country to drive organic growth.”

To accelerate more sustainable expansion of the market, Sanwo-Olu said the stakeholders must pursue tokenisation to draw tech-savvy young entrepreneurs into the market.

The Governor pledged the State Government’s support for the N5 billion endowment fund initiated by the Institute to train people on skills and knowledge relevant to fully digitizing the space for more investors to participate.

The Institute’s 14th president and chairman of its Governing Council, Dr. Fiona Ahmed Ahimie, said the theme for the conference expressed what a well-functioning capital market could accomplish, noting that it examined whether the financial resources being mobilised had been translating to good economic and social outcomes needed by country.

She said: “The theme invites us to move beyond the familiar measures of market activity, capital raised, transactions executed, market capitalisation and investment flows. It asks a more fundamental question:what tangible economic value is the capital market creating for Nigeria and its citizens?

“A developed capital market is an essential pillar of a modern economy. It connects those with capital with businesses and institutions that require funding for productive purposes. It provides businesses with opportunities to raise equity and long-term debt, provides investors with access to investment opportunities, facilitates the transfer of risk, supports price discovery and promotes better corporate governance.”

“Most importantly, it provides a mechanism for converting savings into investments that can create wealth and generate long-term economic value. When a company raises equity to expand its manufacturing operations, the impact can extend beyond its shareholders to workers, suppliers, distributors and surrounding communities.”