Gov. Babajide Sanwo-Olu of Lagos State has renewed calls for deeper market liquidity to strengthen sub-national bond issuances and expand long-term financing opportunities for state governments.
Speaking at the 2024 AIHN Investment Banking Awards in Lagos, Sanwo-Olu, said inadequate liquidity remains the biggest barrier preventing states from fully benefiting from the capital market. Sanwo-Olu was represented by a former Lagos finance commissioner, Mr Abayomi Oluyomi.
He noted that sub-national issuers require a more vibrant market to raise funds efficiently for critical infrastructure. According to him, if sub-national bonds must thrive, then liquidity must be at the centre of reforms. He added that a liquid market gives states confidence to approach investors and assures investors of smooth entry and exit.
Sanwo-Olu said stronger participation by pension funds, asset managers and retail investors would improve pricing and reduce risk premiums for state-backed instruments. He explained that clearer issuance criteria and better disclosure standards would further boost credibility.
“Liquidity, transparency and capacity must work together. With the right structure, the market can finance critical infrastructure without overburdening public revenues,” he added.
Sanwo-Olu assured that Lagos would continue to support policies and innovations that strengthen capital formation for development. He commended AIHN for main taining professional standards and recognising excellence in the market.
Earlier, AIHN President, Mrs Kemi Awodein, called for sustained reforms and stronger digital capacity to deepen the financial markets. Awodein said the industry has remained resilient despite economic pressures but needs innovation, coordinated policies and upgraded skills to unlock broader opportunities.
She noted that technology, governance reforms and product diversification are essential for a modern, globally competitive capital market.
“We must continue to build a market that is transparent, efficient and globally competitive,” she said. Awodein added that rising interest rates have pushed investors toward fixed-income assets, making diversification more urgent.
𝗙𝗼𝗹𝗹𝗼𝘄 𝗢𝘂𝗿 𝗪𝗵𝗮𝘁𝘀𝗔𝗽𝗽 𝗖𝗵𝗮𝗻𝗻𝗲𝗹 𝗧𝗼 𝗚𝗲𝘁 𝗟𝗮𝘁𝗲𝘀𝘁 𝗡𝗲𝘄𝘀 𝗔𝘀 𝗜𝘁'𝘀 𝗗𝗿𝗼𝗽!
