By Adeyinka Adeniran
Leading credit rating agency, Agusto & Co has upgraded the corporate rating of Odu’a Investment Company Limited, (OICL), from ‘A+’ to ‘Aa-’ with a stable outlook in its recently released 2025 Corporate Rating Report.
OICL is the investment holding company jointly owned by the six Southwest states of Nigeria.
The upgrade, according to the report reflects Odu’a Investment’s improved operating income and cash flow, driven by higher dividends from portfolio companies, increased investment returns from non-equity assets, and stronger rental earnings.
The rating also acknowledges the company’s strategic repositioning, including divestments from underperforming assets and reinvestment in high-yielding portfolios managed by reputable asset managers.
Commenting on the rating, OICL Group Chairman, Otunba Bimbo Ashiru said, “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.”
Also commenting, the Group Managing Director/CEO, Mr. Abdulrahman Yinusa added that ‘the improved rating reflects the impact of our ongoing 2020–2025 Strategic Plan which focuses on sweating assets, reviving legacy investments, and creating new income streams.
“As we prepare for the next phase of growth, we stay committed to strengthening our operational efficiency and delivering superior returns to our stakeholders.”
In the report, Agusto & Co however observed that Odu’a Investment’s profitability remains constrained by underperforming legacy assets that are being turned around and the early-stage nature of some recent investments. The report also cited macroeconomic challenges such as inflation and high energy costs as potential risks to earnings stability.
Looking ahead, Odu’a Investment said, it remains confident that its strengthened capital base, diversified income streams, and strategic investments will sustain a positive financial trajectory and enhance its contributions to the economic development of the Southwest region in particular and Nigeria in general.
