Rating Release

Agusto & Co. hereby assigns a “Bbb” (long-term) and “A2” (short-term) ratings to CIG Motors Company Limited, with a stable outlook 

The rating expires on 30 June 2026. 

Agusto & Co. hereby assigns a “Bbb” (long-term) and “A2” (short-term) ratings to CIG Motors Company Limited (“CIG Motors”, “CIGM” or “the Company”). The assigned ratings reflect the Company’s strong earnings-generating capacity and satisfactory profitability, supported by rising vehicle demand, expanding fleet mobility programmes and growing contributions from after-sales services. The ratings are also supported by strong shareholder backing, evidenced by the recent ₦160 billion capital injection for business expansion, as well as operational support from its parent entity, Choice International Group, which enhances the Company’s access to supplier credit lines and strengthens its procurement and funding flexibility. However, the ratings are constrained by CIGM’s inventory-heavy business model, which results in elevated working capital requirements, as well as its exposure to foreign exchange risks, given the high dependence on imported vehicle kits and components. In addition, CIGM’s financial performance remains sensitive to macroeconomic headwinds, including exchange rate volatility, inflationary pressures and high interest rates, which could weigh on consumer purchasing power and vehicle demand.

CIG Motors Company Limited is involved in automotive sales, distribution and vehicle assembly. Incorporated in December 2013, the Company commenced operations as a distributor of brand-new passenger vehicles and has since expanded into local vehicle assembly, fleet mobility solutions and electric vehicle (EV) infrastructure development. CIG Motors maintains partnerships with several international automobile manufacturers, including Guangzhou Automobile Company (GAC), Wuling Motor Holdings, Dongfeng Motor Corporation (DFN), First Automotive Works (FAW) and Jiangling Motors Corporation (JMC). Through these partnerships, the Company imports completely knocked down (CKD) and semi-knocked-down (SKD) vehicle kits for assembly at its 60,000 units per annum facility in Ikeja, Lagos. Beyond vehicle assembly and distribution, CIG Motors provides corporate fleet supply and after-sales maintenance services, while also participating in the Lagos State Government backed LagRide mobility programme.