Tag: Agusto & Co

Leading ratings agency Agusto & Co. Limited has upgraded the credit ratings of Jaiz Bank Plc to A- for long-term obligations and A1 for short-term obligations, both with a stable outlook.

The agency also assigned the bank an Environmental, Social, and Governance (ESG) score of “2,” reflecting strong sustainability performance.

In a statement issued on Friday, Jaiz Bank said the rating upgrade reflects its solid financial performance, effective risk management framework, and robust governance practices.

According to the statement, “This upgrade reflects Jaiz Bank’s strong financial fundamentals, sound risk management framework, effective governance practices, and consistent execution of its strategic growth and digital transformation agenda. It underscores the Bank’s resilience, capital adequacy, and commitment to ethical, sustainable banking that supports Nigeria’s economic development.”

The bank noted that the improved rating further strengthens confidence among regulators, investors, and customers in its leadership and strategic direction.

 “The improved rating reaffirms the confidence of regulators, investors, and customers in Jaiz Bank’s leadership and strategic direction, particularly as the Bank continues to expand its non-interest banking footprint, deepen financial inclusion, and deliver innovative digital solutions to its growing customer base,” the statement added.

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Commenting on the development, Managing Director and Chief Executive Officer of Jaiz Bank Plc, Dr. Haruna Musa, described the upgrade as a validation of the bank’s steady progress and operational strength.

 “We are delighted by Agusto & Co.’s recognition of Jaiz Bank’s progress and stability,” Musa said. “This upgrade validates our ongoing efforts to build a resilient institution anchored on trust, performance, and innovation. We remain committed to continuous improvement, operational excellence, and delivering long-term value to all stakeholders.”

Musa expressed appreciation to the bank’s stakeholders, noting that the achievement was made possible through collective effort.

He added, “We thank our customers, regulators, shareholders, employees, and partners for their unwavering support in driving the Bank’s success story.”

Jaiz Bank Plc, Nigeria’s pioneer non-interest financial institution, has continued to record steady growth since its inception, maintaining a focus on ethical finance, sustainable banking, and innovation-driven service delivery.

Axxela Limited, a gas and power portfolio company in sub-Saharan Africa, has received an upgrade in its corporate credit rating from ‘A’ to ‘Aa-’ by Agusto & Co., with a stable outlook. This rating upgrade also applies to the N11.5 billion and N16.4 billion bond issuance programmes by Axxela Funding 1 Plc, reflecting the Group’s strong credit quality and capacity to meet its financial obligations.

In its report, Agusto & Co. noted that the rating upgrade is a direct reflection of Axxela’s strong and sustained financial performance. The agency highlighted the firm’s prudent balance sheet management, with moderate leverage, healthy working capital, and efficient funding structures. This is further reinforced by the company’s continuous investment in natural gas infrastructure in Lagos, Sagamu, and Port Harcourt, as well as its planned expansion across several industrial hubs in Nigeria and the region, and its growing role in power development.

Speaking on the new rating, Group Chief Executive Officer of Axxela, Timothy Ononiwu, said: “This recognition by Agusto & Co. is a strong endorsement of our strategy and execution. It reflects confidence in our financial discipline, infrastructure investments, and long-term vision. As we expand our footprint, we remain focused on building a resilient enterprise that drives industrial growth in Nigeria and continues to contribute to the region’s energy transition agenda.”

Also reflecting on the upgrade, Head of Corporate Finance & Treasury Management, Yetunde Demuren, noted that: “in today’s challenging climate, this upgrade is a testament to our prudent capital management and robust treasury practices. It reinforces our ability to consistently deliver value to all our stakeholders.”

The new ‘Aa-’ rating places Axxela amongst the highest-rated corporates in Nigeria’s energy sector. With a robust project pipeline, strong regional partnerships, and a restructured business model, Axxela is well-equipped to deliver sustainable growth and deepen its impact across West Africa’s energy landscape.

Banking industry report reveals additional N900 billion capital injection expected in the Nigerian banking industry as the recapitalisation drive continues.

Agusto & Co. Limited, the foremost business information provider and pan-African credit rating agency, has released its 2025 Nigerian Banking Industry Report.

The report provides a comprehensive review of Nigeria’s banking industry, detailing the industry’s structure, competitive environment, regulatory landscape, financial condition, trends, near-term expectations and outlook.

The Nigerian banking industry has remained resilient, successfully navigating various global and domestic macroeconomic vagaries.

The introduction of the minimum paid-up capital in March 2024 drove recapitalisation activities in the Industry. Although the minimum paid-up capital directive will not be effective until 31 March 2026, about N1.7 trillion was raised by 16 banks in 2024.

“Similarly, circa N800 billion was raised in the first seven months of 2025. Thus, eight banks have complied with the minimum paid-up capital directive as at 31 July 2025, ahead of the 31 March 2026 deadline.“

However, the mandatory verifications by the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) are pending on some of the capital raised. We note positively that domestic investors provided most of the capital raised by the banks in the last 19 months, reflecting the acceptability of the Industry by Nigerians,” it said.

 “We anticipate the injection of an additional N900 billion as a significant number of banks strive to comply with the minimum capital directive before 31 December 2025. Thus, providing additional capital buffer for current business risks and near-term growth plans,” the report said.

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As at 31 December 2024, 5.2 per cent of the industry loan book was adjudged as non-performing, higher than 4% recorded in the prior year, based on the deterioration of some credit facilities and the bloating impact of the 40.4 per cent-naira depreciation during the year. We note that some non-performing loans benefitting from regulatory forbearance were included in the stage 2 category as of 31 December 2024. In June 2025, the CBN terminated the regulatory forbearance.

 “Thus, all loans are expected to be classified appropriately with the required provisions taken. All credit exposures are also expected to comply with the prescribed single obligor limit (SOL). In our view, the ongoing capital raising activities will resolve most of the SOL breaches on some exposures hitherto under forbearance”.

 “We also anticipate a surge in write-offs as some banks leverage the transition relief (waiver on the twelve months mandatory waiting period for duly provisioned impaired loans before write-offs) to address non-performing forbearance loans. Notwithstanding, we believe the industry’s impaired loan ratio will surge to 6.9% as some non-performing forbearance loans are classified appropriately,” it said.

However, we expect a reduction in the impaired loan ratio before 31 December 2026 as the non-performing loans are resolved.

In the financial year ended 31 December 2024, the high-yield environment sustained the industry’s performance. The steep naira depreciation also supported profitability, albeit lower than the prior year, largely due to the zero net open position directive of the CBN. In FY 2025, we anticipate a decline in profitability indicators.

The need for the appropriate provision level on the hitherto forbearance loans will drive a surge in the impairment charge. The decision of some banks to accelerate the provision coverage and write off some impaired loans as part of the transitional reliefs will also contribute to higher impairment charges. In addition, we anticipate lower foreign currency revaluation gains that have bolstered profitability since FY 2023.

Agusto & Co Limited has affirmed Parthian Partners Limited (PPL’s) ‘Bbb’ rating with a stable outlook for the year 2024/2025. PPL is a financial services group with expertise in fixed income, structured finance, equity markets, and M&A advisory.

The firm, which made the disclosure in a statement yesterday,  said the rating reflects PPL’s good profitability, acceptable asset quality and competent management team that has begun to implement the plan to transition to a full-service investment banking group.

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It however, said the rating was constrained by higher funding costs due to the current elevated interest rate environment and the cyclical nature of the inter-dealer broker (IDB) business, which is volume-driven.

Speaking on the development, the Chief Executive Officer and Managing Director of Parthian Partners, Oluseye Olusoga, expressed satisfaction with the rating, because it aligns with the company’s current expansion drive, robust earnings potential and wealth of experience of the management team.

According to Olusoga, “The affirmation of Parthian’s rating by Agusto & Co lends credence to the effectiveness of our business strategy and our capacity to continue playing our part in improving liquidity in African markets.”

“The attainment of both Issuing House and Asset Management licenses facilitates our transition into a full-fledged investment bank, thereby expanding our ability to support clients comprehensively,” he said.