Odu’a Investment Company Limited (OICL), the investment holding company jointly owned by the six South-Western states of Nigeria, has received a significant boost in investor confidence as leading credit rating agency, Agusto & Co, upgraded its corporate credit rating from A+ to Aa-, with a Stable Outlook, in its newly released 2025 Corporate Rating Report.
The upgrade reflects Odu’a Investment’s strong financial performance, particularly its improved operating income and cash flow. According to Agusto & Co, the enhanced rating was driven by higher dividend inflows from portfolio companies, increased returns from non-equity assets, and robust rental earnings from real estate holdings.
In addition, the rating agency acknowledged the company’s ongoing strategic repositioning, which includes divesting from non-performing assets and reinvesting in high-yielding portfolios managed by reputable asset managers—moves that have enhanced the company’s overall financial health and risk profile.
Speaking on the development, OICL Group Chairman, Otunba Bimbo Ashiru, described the upgrade as a testament to the company’s sound financial governance and long-term vision.
“This rating upgrade confirms our Board’s commitment to prudent financial management, strategic portfolio optimization, 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,” he said.
Group Managing Director/CEO, Mr. Abdulrahman Yinusa, attributed the improved rating to the successful implementation of the company’s ongoing 2020–2025 Strategic Plan, which focuses on revitalizing legacy assets, unlocking value from underutilized properties, and expanding into new income-generating ventures.
“The improved rating reflects the impact of our strategic direction. As we prepare for the next growth phase, we remain committed to operational efficiency and delivering superior returns to our shareholders,” he stated.
Despite the positive outlook, Agusto & Co noted that certain challenges persist. These include the lingering effects of underperforming legacy assets undergoing turnaround, and the early-stage nature of some recent investments. The agency also highlighted macroeconomic risks such as inflation and rising energy costs that could affect future earnings stability.
However, Odu’a Investment expressed strong confidence in its strengthened capital base, diversified income streams, and ongoing strategic investments to maintain upward momentum.
“We remain focused on our mission to be a leading investment powerhouse contributing meaningfully to the economic development of the South-West region and Nigeria at large,” the statement concluded
