Odu’a Investment Receives AA-(NG) Credit Rating from GCR Moodys, Recommits to Value Creation, Strategic Expansion

The Odu’a Investment Company Limited (OICL) has received an AA-(NG) long-term issuer rating and an A1+(NG) short-term issuer rating from the GCR Moodys agency. This rating, which carries a stable outlook, recognizes the company's strong financial profile, high-quality investment portfolio, and conservative capital management. OICL's new chairman, Dr Tola Kasali, expressed that the rating is a testament to the Group's legacy of prudent stewardship and value creation, praising its strategic mix of listed equities and growing contributions from operating subsidiaries.

Kasali highlighted the AA-(NG) rating as a reflection of the Group's conservative leverage, strong liquidity, and high-quality underlying assets. He noted the Group's resilience in navigating the complexities of frontier markets, citing its governance standards as a standout factor. Despite being state-owned, OICL's governance structure remains free from undue shareholder influence.

Group Managing Director Abdulrahman Yinusa also welcomed the rating, emphasizing that it confirms the Group's robust liquidity coverage of approximately 2x over the next 24 months. The company's liquid listed portfolio is valued at over N80 billion, with unencumbered cash of N4.8 billion. Yinusa clarified that the balance sheet remains largely ungeared, with the subsidiary Wemabod Limited's modest N3 billion bonds well within servicing capacity.

The future looks promising for OICL, with the Group planning to invest up to USD 200 million over the next three to five years in hospitality, real estate, logistics, and power sectors. This strategy aims to broaden diversification and enhance long-term earnings. Yinusa expressed confidence in the stable outlook, stating that it will provide a solid foundation for the Group to pursue its growth initiatives while maintaining conservative financial discipline.