Rating Release
Agusto & Co. upgrades Axxela Limited’s rating to “Aa-”, with a stable outlook
The rating expires on 30 June 2026.
Agusto & Co. hereby upgrades the rating assigned to Axxela Limited (‘Axxela’ or ‘the Company’) to “Aa-”. The rating reflects the consistent improvement in the Company’s financial performance, evidenced by its strong profitability, robust operating cash flow, adequate working capital and low leverage position. The rating is further strengthened by Axxela’s sustained investment in critical gas infrastructure, reinforcing its leadership in Nigeria’s expanding natural gas market, including its regional influence in gas distribution and cross-border trade. In addition, the rating considers the indexation of local gas prices to the US dollars and inflation, offering a natural hedge against currency risk and amplifying the Company’s ability to price adequately. Operationally, Axxela also continues to benefit from exclusive distribution of gas within its franchise network, providing reasonable revenue assurance and preserving its margins from the potential effect of competition. Nonetheless, the rating is moderated by supply assurance risk arising from the Company’s dependence on the Escravos-Lagos Pipeline network, which could impact its contractual performance in the event of a disruption.
Axxela Limited (along with its subsidiaries) is a pioneer private sector developer of natural gas infrastructure in Nigeria. With over 360 kilometres of developed pipeline infrastructure and a throughput capacity of 236 million standard cubic feet per day, Axxela operates across the full spectrum of the natural gas value chain, delivering energy solutions to more than 200 industrial and commercial customers. The Company is also a designated shipper on the West African Gas Pipeline (WAGP) and a member of the West African Power Pool (WAPP), reinforcing its strategic role in regional gas distribution and cross-border energy trade.
