Rating Release
Agusto & Co. hereby assigns “Bbb” (long-term) and “A2” (short-term) ratings to Benue Investment and Property Company Limited, with a stable outlook
The rating expires on 30 June 2026.
Agusto & Co. hereby assigns “Bbb” (long-term) and “A2” (short-term) ratings to Benue Investment and Property Company Limited (“Benue Investment”, “BIPC” or “the Company”). The assigned ratings reflect BIPC’s improved revenue generation, supported by higher rental income from its real estate portfolio, increased proceeds from property sales and stronger fair value gains on quoted equity investments. The ratings are further bolstered by the Company’s adequate liquidity and low leverage profile, upheld by consistent funding support from the Benue State Government. However, the ratings are constrained by BIPC’s weak earnings quality and cash flows, given its huge reliance on volatile fair value gains on investment securities rather than recurring operating income, reflecting the underperformance of core subsidiaries and the early-stage nature of its new investments. In addition, governance concerns (particularly the significant political influence over strategic decisions and Board appointments) pose material risks to independence, continuity and professional oversight.
Benue Investment and Property Company Limited (“BIPC”) is an investment holding company wholly owned by the Benue State Government. Established in 1979, the Company directly manages a portfolio of wholly owned businesses across the agro-processing, beverages, food production, packaging, fertiliser blending, hospitality, financial services, and oil and gas industries. BIPC also owns a sizeable real estate portfolio comprising residential, commercial and mixed-use properties in Benue, Kaduna, Nasarawa, Lagos and Abuja. In addition, the Company engages in commodity trading (particularly rice, soyabeans and sesame) and operates dedicated aggregation hubs that link farmers in Benue State to wider markets.
