Axxela Limited has received an upgrade of its national scale long-term issuer rating to A+(NG) from GCR Ratings, with the short-term issuer rating affirmed at A1(NG) and a stable outlook assigned, marking the highest credit rating the sub-Saharan African gas and power portfolio company has ever held and capping a six-year ascent from BBB+(NG) in 2020.

GCR said the upgrade reflects Axxela's robust business model, strong earnings performance, and sustained financial profile. Concurrently, the agency upgraded the long-term issue ratings on both bond programmes under Axxela Funding 1 Plc, lifting the ₦16.4 billion Series 1 senior unsecured bond to A+(NG) from A(NG) and raising the ₦11.5 billion Series 1 senior secured bond to A+(NG)(EL) from A(NG)(EL).

The action continues a steady upward trajectory in Axxela's credit profile. GCR upgraded the company to A(NG) with a positive outlook in August 2025, citing above-budget earnings performance, improved free cash flows and a significant strengthening in leverage metrics, and flagged at the time that a further upgrade was possible if financial performance held its course. The stable outlook now attached to A+(NG) signals that GCR views the company as having reached a level of financial and operational maturity that warrants a pause in the upgrade cycle rather than a continuation of it.

Group Chief Executive Officer Moshood Olajide described the rating as an endorsement of the company's financial discipline and strategic direction. "Beyond recognising our financial strength, it reflects the resilience of our business model and the confidence in our strategic direction," he said, adding that Axxela has over recent years expanded its natural gas infrastructure, strengthened its operational footprint, advanced its sustainability agenda and maintained a commitment to operational excellence and safety.

The upgrade also builds on an independent affirmation from Agusto & Co., which had separately raised Axxela's corporate credit rating from A to Aa- with a stable outlook, making the GCR action the second major rating agency to revise the company's credit profile upward within the same cycle. Two agencies moving in the same direction within a short window carry more weight than either action would on its own.

For a company that delivers natural gas to approximately 200 industrial and commercial customers through a pipeline network spanning more than 400 kilometres across Nigeria, the A+(NG) rating has practical implications beyond the headline. Higher credit ratings expand the pool of institutional investors that can participate in future bond issuances, reduce the cost of debt capital, and strengthen Axxela's negotiating position as it seeks to finance the next phase of infrastructure expansion across the West African region. In a market where energy infrastructure financing remains one of the most persistent constraints on growth, a stronger credit profile is not merely a scorecard. It is a competitive asset.

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