Business
JUST IN: S&P Global to acquire majority stake in Agusto & Co.
S&P Global announced Tuesday that it has agreed to acquire a majority stake in Agusto & Co., a leading Pan-African rating agency with operations in Nigeria, Kenya, Rwanda and Ghana.
The investment, a strategic step for both companies, will complement and support the growth strategy of the S&P Global Ratings division in Africa.
The company said in a statement that by combining S&P Global’s international expertise and resources with Agusto & Co.’s strong Pan-African presence and reputation for excellence, the partnership aims to expand market insights, strengthen credit transparency, and support market participants across the region.
“We are delighted to partner with Agusto & Co. to strengthen our domestic ratings presence across Africa,” said Yann Le Pallec, President, S&P Global Ratings. “This transaction underscores our commitment to supporting growth and transparency in local credit markets throughout the continent. Africa’s opportunity is extraordinary, and by combining our global expertise with Agusto & Co.’s deep local insights, together we can foster informed analysis, constructive market dialogue, and greater investor confidence both regionally and internationally.”
“This partnership is a transformational milestone for Agusto & Co. and African capital markets, fulfilling our late founder’s vision of affiliating with a leading global rating agency,” said Yinka Adelekan, Managing Director of Agusto & Co.
“For more than 30 years, we have built a trusted credit rating institution across Africa. By combining our deep Pan-African market knowledge and analytical independence with S&P Global Ratings’ global expertise, resources and affiliate network, we believe this partnership will create new opportunities, enhance value for market participants, and support the continued development of transparent and resilient credit markets across the continent.”
Agusto & Co. is a leading Pan-African credit rating agency with a strong presence in Nigeria and other key African markets, rating financial institutions, corporates and other entities. Following the transaction, Agusto & Co. will continue to operate as a separate ratings entity and issue its own credit ratings and methodologies in accordance with applicable regulatory requirements.
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The transaction is subject to customary closing conditions, including receipt of required regulatory approvals.
The terms of the transaction were not disclosed.
Subject to obtaining all required regulatory approvals, the transaction is expected to close during the second half of 2026.
The transaction is not expected to have a material impact on the financial results of S&P Global or S&P Global Ratings, the agency said.
Agusto & Co. was founded in 1992 by the late Nigerian economist and chartered accountant, Olabode (Bode) Agusto. It was established as the first credit rating agency in Nigeria.
Mr Agusto, who served as the firm’s first managing director for 11 years, died in October 2023.
President Bola Tinubu has said 21 shared facilities established across 19 states and the Federal Capital Territory are supporting businesses and an estimated 650,000 jobs.
The facilities, established under the Federal Government’s National MSME Clinics initiative, provide entrepreneurs with access to equipment, electricity and production infrastructure without requiring them to bear the full cost of setting up such facilities themselves.
President Tinubu disclosed this in a statement on Monday while highlighting the government’s efforts to address infrastructure and equipment challenges facing micro, small and medium enterprises (MSMEs).
According to the President, many small businesses have the skills and ideas to expand but struggle to access the equipment and infrastructure needed to increase production.
He said the shared MSME hubs were designed to reduce some of those barriers by allowing entrepreneurs to use modern production facilities without making large upfront investments.
He cited tailors and food processors as examples of businesses that could benefit from the model.
“A tailor should not need millions of naira to buy industrial machinery before she can grow her business. A food processor should not have to build a factory before producing at scale,” he said.
The President said access to shared facilities could allow businesses to increase production while reducing their operating costs.
“When small businesses can produce more, at lower cost, they become more competitive. They grow. They employ more people. They create income and opportunity for Nigerian families.”
MSME support
The initiative comes as the Federal Government expands programmes aimed at improving access to finance, equipment, skills and markets for small businesses.
READ ALSO: Sowore’s AAC sues Tinubu, others over failure to transfer power to Shettima
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), which implements several government MSME support programmes, has previously identified access to finance, infrastructure and markets among the challenges confronting small businesses.
The government has also introduced other interventions aimed at improving access to credit. These include the National Credit Guarantee Company (NCGC), which provides guarantees to encourage financial institutions to lend to businesses and other eligible borrowers.
President Tinubu noted that the government’s approach was focused on removing barriers that prevent entrepreneurs from turning their skills and ideas into sustainable businesses.
“Our job is to remove those barriers,” he said.
He added that strengthening small businesses would help create employment, increase household incomes and expand economic activity.
“Giving Nigerian enterprise the tools to succeed is how we build prosperity from the ground up,” President Tinubu said.
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