NAHCO Records New Milestone with Boost in Exports

Chinedu Eze and Oluchi Chibuzor

Nigeria’s foremost aviation handling firm, Nigeria Aviation Handling Company Plc (NAHCO Aviance) has recorded groundbreaking achievement with facilities and funding to boost exports.

The company, in collaboration with Nigerian Export Processing Council (NEPC), has pushed the federal government campaign to boost export further by building export processing centres across five states in an effort to reverse the country’s trade imbalance.

The centres in Lagos, Abuja, Enugu, Port Harcourt and Kano will help reduce product rejection encountered by Nigerian exporters in the international market.

With NAHCO Aviance recipient of the NEPZ grant, the project when completed in five months would boost export potential of the country to about two million metric tonnes per annum.

Speaking at the ground breaking ceremony for the Lagos State project, recently, the Executive Director, Nigerian Export Promotion Council (NEPC), Dr. Ezra Yakusak, said the country must continue to embark on projects that would reverse trade imbalance.

Yakusak, who noted that the project was in line with the NEPC export survival campaign, said the only way out for Nigeria to survive economically was to export.

He maintained that the non-oil sector remains a low hanging fruit for every Nigerians to plug into to gain foreign exchange in order to stabilize the economy.

“We are very delighted that the NEPC grant which we assisted NAHCO is working and is judiciously being used; I think we need to appreciate them because in some other balance when these grants are given they will say this is government money and of course the story is a different thing.

“Am so happy today that the grant that was given under the export expansion facility programme is working and I assure you that in the next four to five months that this building will be standing. Nigeria may not understand the importance of this, but when you hear the various cases of export rejection due to poor packaging you will understand that we need this badly,” he said.

For the Chairman, NAHCO Aviance, Dr. Seine Oladapo Fadeni, they are prepared in helping NEPZ achieve their dream of boosting the export processing areas when the project is fully completed across the geopolitical zones.

“We realised the fact that we need to boost the process of exporting Nigeria’s products, especially agricultural products, so that we can have more FX and our dollar does not depend on petroleum products alone,” Fadeni said.

Meanwhile, NAHCO Aviance has paid N665 million as dividend to shareholders as turnover grows by 44 per cent.

This was disclosed at its 41st Annual General Meeting (AGM) in Lagos on the 29th of July 2022. At the AGM, the Board of the company informed shareholders that the group turnover stood at N10.2 billion, representing a 44 per cent improvement over the 2020 financial year performance, despite the effect of the Covid-19 pandemic on its operations.

As a reward for their continued trust and belief in the company, shareholders were rewarded with a gross dividend of 41 kobo per ordinary share of 50 kobo each, amounting to N665 million. This was an increase of 341 per cent over the N12.5 kobo per ordinary share paid to shareholders at the end of the 2020 financial year.

The company also gave out one bonus share for every five shares held by the existing shareholders and assured the Shareholders that the 2022 dividend may be way higher based on Year-to-date performance in 2022.

The 2021 annual report and accounts of the group indicated that the N10.2 billion revenue was an improvement from the N7.1 billion it earned in 2020. The NAHCO Group earned N924, 855 million Profit Before Tax (PBT) in 2021, showing 156% increase from the previous year, which was N361, 279 million. Profit after tax (PAT) also increased to N771, 615 million, indicating 155 per cent growth, compared to N302, 131 million of 2020 financial year. NAHCO Plc total equity under the year in review was N7 billion, showing an increase of 9 per cent when compared to that of 2020.

Fadeni assured at the meeting that the company would continue to be the leading ground handling company in Africa in terms of market share, client base, revenue, and profitability. 

He explained that the Nigerian economy was fragile in 2021, after exiting recession in the last quarter of 2020. He however said that despite this, “Our focus in 2021 was a responsible and inclusive growth, which allowed us to be a source of stability for our customers during the challenging times. Closing the second year of unprecedented disruption, low interest rates and market volatility, NAHCO Plc earned N10.2 billion in revenue with improved capital base, growth in customers deposits, liquidity, and improved gearing ratios.’’

He lamented that the current high forex rate and challenge in accessing the foreign exchange and the global increase in the crude oil prices, has dampened the positive projections for 2022.

The Chairman explained further that despite various challenges, NAHCO had invested over N4 billion in the acquisition of Ground Support Equipment (GSE) and assured the shareholders that the company would perform better in the 2022 financial year.

NAHCO Plc is a Nigerian diversified group with interests in air cargo services, aircraft handling, passenger facilitation, crew transportation and aviation training, airport free zone and logistics. 

So in order to express gratitude to its partners, NAHCO Aviation recently feted its clients in a dinner and promised to improve on its services.

At the dinner, the Chairman of the company, Dr. Fadeni said the company’s clients was the major reasons the company has grown over the years despite the myriads of challenges in the aviation sector.

NAHCO Aviance clientele cuts across clearing agents, airlines, Nigeria police, Nigeria Immigration Service, Nigeria Customs Service and Federal Airports Authority of Nigeria among others.

Fadeni stated that there are numerous challenges limiting the growth of handling business in Nigeria but assured that as a leading handling company in the country, NAHCO would continue to deliver quality and excellent services to its clients.