Axxela Limited, one of sub-Saharan Africa’s foremost gas and power companies, has received a significant boost to its credit profile as Global Credit Ratings (GCR) upgraded its long-term and short-term issuer ratings to A(NG) and A1(NG), with a positive outlook.

The upgrade reflects the company’s solid financial performance, prudent management, and growing influence in Nigeria’s energy landscape.
The Lagos-based company’s improved standing follows above-budget earnings in 2024, stronger free cash flows, and a marked reduction in leverage, according to GCR. The ratings agency also highlighted Axxela’s consistent earnings growth, achieved through favourable currency translation, tighter cost controls, and greater scale efficiencies.

Alongside the issuer ratings, GCR upgraded Axxela Funding 1 Plc’s bond programmes, raising its N16.4 billion Series 1 senior unsecured bond to A(NG) from A-(NG), and lifting its N11.5 billion Series 1 senior secured bond to A(NG)(EL) from A-(NG)(EL). The outlook across all ratings signals strong investor confidence in the company’s financial discipline and market position.

Group Chief Executive Officer of Axxela, Timothy Ononiwu, described the upgrade as a reaffirmation of the company’s resilience and long-term strategy.

He said: “This rating reaffirms our sound strategy, operational resilience, prudent financial management, and execution excellence. Buoyed by this upgrade, we are even more determined to scale our infrastructure footprint, deepen partnerships, deliver cleaner energy solutions that power
Nigeria’s industries and communities, and extend such to the West African region.”

The development comes on the heels of a similar ratings uplift earlier this year when Agusto & Co. upgraded Axxela’s corporate credit rating from ‘A’ to ‘Aa-’, with a stable outlook, citing its consistent growth trajectory and diversified customer base.

According to Ononiwu, Axxela, over the past five years, has consolidated its position as a leading private sector player in Nigeria’s gas and energy sector, delivering natural gas to about 200 industrial and commercial customers through a pipeline network spanning more than 400 kilometres.

Co-owned by Helios Investment Partners and Sojitz Corporation, the company has also distinguished itself as a designated natural gas shipper on the West African Gas Pipeline and a member of the West African Power Pool.