NAHCO Eyes Further Diversification To Drive N300bn Turnover

The Nigerian Aviation Handling Company (NAHCO) Plc has assured shareholders that the five-year growth strategy being implemented by the company would drive its turnover above N300 billion within the next five years.

At the annual general meeting held at the weekend, the board said the company has continued to strengthen its position as the market leader in aviation ground handling while diversifying into new opportunities.

The assurance came as shareholders approved the payment of N11.58 billion as cash dividends for the 2024 business year, representing a dividend per share of N5.94. The latest dividend represented a 134 per cent increase on N4.95 billion paid for the 2023 business year.

Chairman, Nigerian Aviation Handling Company, Dr Seinde Oladapo Fadeni, said the board and management are completely focused on implementing the company’s five-year strategic blueprint, which would drive the next phase of the growth of the group.

He noted that the 2024 performance signposted what the future holds for shareholders of the company, assuring that the group is in position to sustain impressive growths and achieve its target of N300 billion turnover.

The audited report and accounts of NAHCO for the year ended December 31, 2024 showed that profit before tax doubled by 115.4 per cent to N18.70 billion in 2024 as against N8.68 billion in 2023. Total revenue rose by 88.5 per cent from N28.40 billion in 2023 to N53.54 billion in 2024.

Fadeni said NAHCO has demonstrated remarkable resilience despite challenges in the operating environment, adding that the company has been positioned for an even more rewarding future. He said the company plans to deepen its diversification by building a hotel while also growing its commodities export business.

“The board understands the important place of technology in modern business and is committing funds into providing the company with next generation technology to enable it run its processes smoothly and efficiently. The company is currently implementing Oracle ERP and HCM systems, a pivotal initiative designed to enhance NAHCO’s efficiency and digital transformation.

“In the last one year, the company has been re-fleeting its equipment. We have a target to replace all ageing equipment by December 2025,” Fadeni said.

Group managing director, NAHCO, Olumuyiwa Olumekun, highlighted some operational achievements in the past year to include the recertification of the company in three major stations of Lagos, Abuja and Kano and the commissioning of a new NAHCO Export Packaging and Processing Centre, Lagos.

According to him, the new centre, the first of its kind in Nigeria, was a strategic move to enhance the competitiveness of Nigerian products on the global stage while creating more jobs for Nigerians.

He outlined that the group would focus on four areas of sustained growth, equipment re-fleeting, digitization and environmental social governance (ESG) to ensure better performance in the period ahead.

He explained that the diversified nature of the group and the onboarding of new business ventures would ensure that the group sustains its growth trajectory.

Shareholders who spoke during the meeting commended the board and management of the company for the impressive operational performance and the bounteous returns.

They noted that, in addition to a cash dividend increase, the capital gain on the company’s share at the stock market has made NAHCO one of the best investments they have ever made.