Pan-African rating firm Agusto & Co. has upgraded Odu’a Investment Company Limited’s corporate rating to ‘Aa-’ with a stable outlook in its recently released 2025 Corporate Rating Report.
In a statement on Thursday, Odu’a Investment said the upgrade from the previous rating of ‘A+’ to ‘Aa-‘ reflects its improved operating income and cash flow, driven by higher dividends from portfolio companies, increased investment returns from non-equity assets, and stronger rental earnings.
Odu’a Investment Company is an investment holding company jointly owned by the six South-West States of Nigeria.
Commenting on the rating, OICL Group Chairman, Bimbo Ashiru, said, “This rating upgrade confirms our board’s commitment to prudent financial management, strategic portfolio optimisation, and sustainable value creation for our shareholders. It underscores Odu’a Investment’s resilience and adaptability in navigating economic headwinds while pursuing growth in critical sectors of the economy.”
Group Managing Director/Chief Executive Officer, Mr. Abdulrahman Yinusa, added, “The improved rating reflects the impact of our ongoing 2020–2025 Strategic Plan, which focuses on sweating assets, reviving legacy investments, and creating new income streams.
As we prepare for the next phase of growth, we stay committed to strengthening our operational efficiency and delivering superior returns to our stakeholders.”
Agusto & Co also observed that Odu’a Investment’s profitability remains constrained by underperforming legacy assets that are being turned around and the early-stage nature of some recent investments.
The report also cited macroeconomic challenges such as inflation and high energy costs as potential risks to earnings stability.
“Looking ahead, Odu’a Investment remains confident that its strengthened capital base, diversified income streams, and strategic investments will sustain a positive financial trajectory and enhance its contributions to the economic development of the South-West region in particular and Nigeria in general,” the firm concluded.
