NAHCO plans further diversification to drive N300bn turnover

The board of Nigerian Aviation Handling Company (NAHCO) Plc has assured shareholders that the five-year growth strategy being implemented by the company will drive its turnover above ₦300 billion within the next five years.

At NAHCO’s Annual General Meeting (AGM) held over the weekend, the board stated that the company continues to strengthen its position as the market leader in aviation ground handling while diversifying into new opportunities.

This assurance was given as shareholders approved the payment of ₦11.58 billion in cash dividends for the 2024 business year, representing a dividend per share of ₦5.94. This latest dividend reflects a 134 per cent increase compared to the ₦4.95 billion paid for the 2023 business year.

Chairman of Nigerian Aviation Handling Company (NAHCO) Plc, Dr Seinde Oladapo Fadeni, stated that the board and management remain fully focused on implementing the company’s five-year strategic blueprint, which will drive the next phase of the group’s growth.

According to him, the company is undergoing transformative changes, including improvements in operating strategy, equipment, staff welfare, and management, as well as significant investments in technical expertise and new opportunities.

He noted that NAHCO’s 2024 performance signals a promising future for shareholders, assuring them that the group is well-positioned to sustain impressive growth and achieve its ₦300 billion turnover target.

“The year was one of tremendous progress, marked by significant achievements and a renewed sense of purpose across all facets of our operations,” Fadeni said.

The audited report and accounts of NAHCO for the year ended 31 December 2024 showed that profit before tax had doubled by 115.4 per cent to ₦18.70 billion, compared to ₦8.68 billion in 2023. Total revenue rose by 88.5 per cent, from ₦28.40 billion in 2023 to ₦53.54 billion in 2024. With increased operational efficiency, gross profit surged by 120.53 per cent to ₦33.08 billion in 2024, up from ₦15 billion in 2023. Operating profit also jumped by 123.93 per cent, from ₦8.86 billion to ₦19.84 billion, underscoring the fact that the group’s performance was primarily driven by its core business operations.

Fadeni stated that NAHCO has demonstrated remarkable resilience despite challenges in the operating environment, adding that the company is positioned for an even more rewarding future.

He revealed plans to deepen diversification efforts by constructing a hotel and expanding its commodities export business.

“The company continues to adapt and push forward, maintaining operational efficiency while striving to uphold its standard of service excellence and increasing shareholders’ value.

“The board recognises the critical role of technology in modern business and is committing funds towards equipping the company with next-generation technology to ensure seamless and efficient operations. The company is currently implementing Oracle ERP and HCM systems—key initiatives aimed at enhancing NAHCO’s efficiency and digital transformation.

“Over the past year, the company has been re-fleeting its equipment. We aim to replace all ageing equipment by December 2025,” Fadeni said.

He pointed out that the recent 50 per cent increase in salaries, along with the existing annual profit-sharing initiative and semi-annual performance bonus scheme, reflects the company’s commitment to staff welfare.

Fadeni highlighted the Industry Champions Award, presented to NAHCO by the industry regulator, the Nigeria Civil Aviation Authority (NCAA), as further validation of the company’s excellence in the aviation sector.

“We have emerged over time as a beacon of resilience in the aviation industry. We support good causes. We represent the best in Nigeria’s aviation—in corporate governance, staff welfare, and profitability,” he added.

Group Managing Director of Nigerian Aviation Handling Company (NAHCO) Plc, Mr Olumuyiwa Olumekun, outlined key operational achievements over the past year, including the recertification of the company in three major stations—Lagos, Abuja, and Kano—and the commissioning of the new NAHCO Export Packaging and Processing Centre in Lagos.

According to him, the new centre, the first of its kind in Nigeria, is a strategic move to boost the global competitiveness of Nigerian products while creating more jobs.

“We have embarked on a journey that not only strengthens our foothold in the global market but also contributes to Nigeria’s economic development,” Olumekun said.

He outlined that the group would focus on four key areas to ensure sustained growth: equipment re-fleeting, digitisation, and environmental, social, and governance (ESG) considerations.

He explained that the diversified nature of the group, coupled with the introduction of new business ventures, will ensure continued growth.

“Since transitioning from being the foremost ground-handling service provider in the entire sub-region to becoming a diversified, total logistics group, we have been driven by an unwavering commitment to providing an unmatched level of excellent service delivery to our clients. This mission has become even more urgent as we seek to meet rising demands for excellence and enhance shareholder value,” Olumekun said.

He commended shareholders, customers, and staff for their continued support, which has enabled the group to perform better year after year.

“We will continue working together to achieve even greater success for the company,” Olumekun assured.

Shareholders who spoke during the meeting praised the board and management for the company’s impressive operational performance and substantial returns.

In addition to the increased cash dividend, they noted that the company’s share price appreciation on the stock market has made NAHCO one of their most rewarding investments.

Founder of the Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, expressed his confidence in NAHCO, attributing this to its strong performance across key indicators.

He urged the company to maintain its growth trajectory.

President of the Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr Faruk Umar, described NAHCO’s operational performance and returns as remarkable.

He assured that shareholders would continue supporting the company in its pursuit of further growth and improved returns.

“We are happy with NAHCO. If you compare the share price today to what it was years ago, you will see the value creation we are discussing. The share price has traded above ₦80 per share this year—a company that was trading below ₦10 a few years ago. And if you look at the financial results, you will be pleased to see how the company is growing massively,” Umar said.

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