Rating Release

Agusto & Co. hereby affirms the “Aa-” (long-term) and “A1+” (short-term) ratings assigned to Odu’a Investment Company Limited, with a stable outlook 

The rating expires on 30 June 2027. 

Agusto & Co. hereby affirms the “Aa-” (long-term) and “A1+” (short-term) ratings assigned to Odu’a Investment Company Limited (“Odu’a Investment”, “OICL”, “the Holding Company” or “the Company”). The ratings reflect OICL’s strong financial profile, evidenced by robust growth in recurring operating income and cash flow, sizeable liquid assets, substantial equity cushion and low leverage profile. The ratings are further upheld by the Company’s diversified income streams and portfolio of subsidiaries, associates and other investee companies with established positions across key sectors of the Nigerian economy. We also considered the ongoing redeployment of proceeds from the disposal of non-core assets into higher-yielding investments, together with planned property developments and growth initiatives under OICL’s SRC 2.0 (Sweat, Repurpose and Consolidate) plan, which are expected to improve asset productivity, earnings and cash generation over the medium term. However, the ratings are constrained by the Company’s modest three-year average returns relative to risk-free securities, reflecting its sizeable legacy assets that have yet to be fully optimised. The ratings are also moderated by the sensitivity of dividend and investment income to macroeconomic and capital-market conditions, as well as execution risks associated with the Company’s capital-intensive and long-term project pipeline.

Odu’a Investment Company Limited is a non-operating investment holding company owned equally by the governments of Ekiti, Lagos, Ogun, Ondo, Osun and Oyo States. As at 31 December 2025, OICL’s portfolio comprised nine direct subsidiaries, four associates, strategic holdings in listed and privately held companies, and investment properties valued at approximately ₦87 billion, providing exposure to real estate, agriculture, manufacturing, hospitality, healthcare, financial services, information technology, equipment leasing, printing and publishing, and oil and gas.