NAHCO’s Investments in Air Cargo Drive Non-oil Exports

Nigerian Aviation Handling Company Plc (NAHCO)’s investments in air cargo and ground handling operations are facilitating impressive growths in non-oil exports and boosting returns to investors, writes Kayode Tokede

The latest Gross Domestic Product (GDP) report released by the National Bureau of Statistics (NBS) showed that Nigeria’s economy rose by 3.98 per cent in third quarter 2025. This compared with 3.9 per cent recorded in third quarter 2024 and 4.2 per cent recorded in second quarter 2025. The report underlined sustained economic growth and recovery.Sectoral analysis showed that the third quarter 2025 growth was driven by both oil and non-oil sectors. Particularly, non-oil sector contributed 96.6 per cent while oil sector accounted for 3.4 per cent of the economic activities. The oil  sector expanded by 5.8 per cent, with oil production averaging 1.64mbpd in third quarter 2025.

Notably, growths across the three primary sectors- agriculture, industry, and services were the main drivers of the non-oil sector’s performance. Agricultural output rose by 3.8 per cent. Analysts at Afrinvest West Africa noted that growth in agriculture sector was driven by the main harvest season and cash and food crops export earnings. The industrial sector  expanded by 3.2 per cent while the services sector improved by 4.2 per cent.According to analysts at Afrinvest, Nigeria’s economic growth “remains heavily anchored on non-oil sectors, reflecting both the resilience and structural diversification of the Nigerian economy.”

However, industry analysts said at the heart of Nigeria’s expansive growth in non-oil sector is the upsurge in air cargo exports. With the NAHCO Export Processing and Packaging Centre (NEPPC), owned by Nigerian Aviation Handling Company (NAHCO) Plc, agricultural exports have become increasingly standardised and seamless. Same for other cargoes.The NEPPC serves as a state-of-the-art value-added operational centre designed to strengthen Nigeria’s air-export capacity; particularly perishable commodities.

Operationally, NEPPC functions as a one-stop export centre, working in close coordination with key regulatory and facilitation agencies such as the Nigeria Agricultural Quarantine Service (NAQS), Nigeria Customs Service, NAFDAC, NDLEA, and the airlines. This coordinated process ensures that all shipments passing through the centre are safe, compliant, and export-ready before dispatch. The result is a measurable reduction in cargo dwell time, minimization of re-handling, and a consistent improvement in the integrity and traceability of perishable air freight shipments.

From a strategic standpoint, NEPPC bridges a long-standing gap in Nigeria’s export logistics value chain — providing the infrastructure and technical support that many small and medium-scale exporters have historically lacked. By centralizing export processing and introducing global best practices in handling, inspection, NEPPC not only raises the operational standards of Nigerian exporters to meet international regulatory requirements such as European Union and GCC standards, but also enhances the country’s credibility and competitiveness in the global perishables market.

In essence, NEPPC transforms the export experience from fragmented and reactive to integrated, compliant, and efficient — positioning Nigeria to capture greater value from its agro-export sector through reliable air cargo connectivity.Analysts noted that there has been a surge in activities at the NAHCO’s export drop-off zone since the commencement of operations at NEPPC in July 2025.Speaking on this development, Group Managing Director, NAHCO, Mr Olumuyiwa Olumekun, said the company  has positioned itself at the growth end of the Nigeria’s economy with its expansive investments in export processing and warehouses across the country.

He noted that the massive NEPPC in Lagos was a first of its kind in Nigeria and a deliberate strategy for sustainable benefits to all stakeholders.According to him, across its operations, NAHCO is adding values to the Nigerian economy and all stakeholders, while ensuring competitive returns to shareholders.He said the group remains focused on four areas of sustained growth, equipment re-fleeting, digitisation 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.

“Since transiting from being the foremost ground handling service provider in the entire sub-region to being a diversified, total logistics group, we have been driven by the earnest desire to provide unmatched level of excellent service delivery to our clients. This commitment has become more urgent as we seek to satisfy new demands for excellence and to improve shareholder value,” Olumekun said.

He noted that NAHCO is a leader in Nigeria’s aviation environmental, social, governance (ESG)’s compliance.Experts have noted the need for air cargo hubs to consider green freight initiatives such as sustainable aviation fuels, carbon-offset programmes and efficient handling as global supply-chains increasingly embed ESG metrics. With this, NAHCO is clearly well positioned to drive Nigeria’s non-oil sector sustainably.In the last quarter, NAHCO launched additional multi-million dollar equipment in the quest to support national economic rebirth.Chairman of NAHCO Plc, Dr. Seinde Fadeni, said the essence of these equipment was not just for the company alone, but as a strategic investment in Nigeria’s economy.

The new batch  of multi-million-dollar ground support equipment (GSE) were expected to enhance ground handling operations countrywide.He reiterated the plan of the board to ensure that the company boasts of more than adequate equipment by the end of this year.Fadeni disclosed that the process for acquiring the new equipment started last year, but the company had to endure delivery delays while the manufacturer finishes producing and shipping to Nigeria.He said: “The essence of these equipment is not just for the company alone or for the customers, it is also to make life easier for the workers. I can confirm to you that we have a lot in our cap, and we’re bringing them out one by one.”Chief Operating Officer, NAHCO Plc, Mr. Didier Stuellet, said the huge investments demonstrated the commitment of the company to long-term growth.

“It’s a huge investment. We’re talking about millions, not in naira, but in dollars, and so this is always difficult for the owners of a company like this to take a decision like this; to take the best decision. This is the best decision for NAHCO,” Stuellet said.He said the company would make complete re-fleeting of equipment happen in the long term, adding that NAHCO is more than halfway into that process.

He said: “We still have some equipment coming in the coming months, years.”Head, Ground Support Equipment (GSE), NAHCO) Plc, Mr. Charles Karinga, noted that the acquisition of nine brand new high loaders by NAHCO was a huge one in the history of Nigerian aviation and that not many ground handling service providers in the region could acquire so many equipment at the same time.He described a high loader as a  ground support equipment, equipped with a high-reach lift mechanism to load or unload items, cargo, food, drinks, cleared for air transportation.

“Buying this number of high loaders at this same time is not something that is normally done by many handlers in this clime because they are very expensive.  This is the first time this would be happening,” Karinga said.He also pointed out that the brand of the equipment deployed by the company is one of the very best in the industry and would serve the Company and its airline clients for several years.

The increased economic and operational activities have also impacted the corporate results of NAHCO.The nine-month results of NAHCO for the period ended September 30, 2025  showed strong growths across sales and profitability, with a 47 per cent increase in net earnings underlining the increased capacity of the leading aviation handling and logistics group to sustain improved returns to shareholders.

The report showed that total revenue rose by 40.7 per cent from N33.95 billion in third quarter(Q3) 2024 to N47.76 billion in third quarter 2025, driven by renewed and new business contracts and expanding business activities across the subsidiaries. Gross profit rose by 37.1 per cent to N28.43 billion in Q3 2025 as against N20.74 billion in third quarter 2024, showing top-line cost efficiency despite domestic and global inflationary pressures.

Operating profit jumped by 40.8 per cent from N12.88 billion to N18.14 billion, underlining the fact that the performance of the company was driven by business operations rather than financial or structural management. Profit before tax leapt by 46 per cent to N17.94 billion in third quarter 2025 compared with N12.29 billion in Q3 2024.After taxes, net profit stood at N13.46 billion, representing a remarkable increase of 46.6 per cent on N9.18 billion recorded in comparable period of 2024. With this, earnings per share increased simultaneously from N4.71 to N6.91, providing significant headroom for the group to sustain higher dividend payouts, even by Q3.The balance sheet of the group also remained strong with total assets rising from N46.95 billion in December 2024 to N48.64 billion by September 2025. Shareholders’ funds also increased from N20.04 billion in December 2024 to N21.92 billion in September 2025.

The Q3 2025 report places NAHCO, which had increased dividend payout by 134 per cent for the 2024 business year, in stronger stead to sustain its upwardly investor-friendly dividend policy. It should be recalled that NAHCO had distributed N11.58 billion as cash dividends for the 2024 business year, representing a dividend per share of N5.94, compared with N4.95 billion paid for the 2023 business year.Fadeni said the Q3 2025 performance reflected continuing industry leadership as the most preferred aviation logistics group and the ongoing diversification of the group.He said the board and management remain committed to a sustainable business model that widens activities and deepens profitability, placing the group in position for better returns to all stakeholders.According to him, the group is completely focused on implementing its five-year strategic blueprint, which would drive the next phase of phenomenal growth.

He assured all stakeholders that NAHCO would continue to prioritise investments in equipment, technologies and know-how to retain its leadership position not only in Nigeria but in the entire West African region.NAHCO’s Q3 2025 performance built on equally impressive performance in first half 2025. Interim report and accounts of NAHCO for the half-year ended June 30, 2025 showed that the leading aviation handling group doubled group revenue by 102.06 per cent to N32.33 billion in first half 2025 as against N16.0 billion recorded in comparable period of 2024. Gross profit grew by 117.73 per cent from N8.80 billion to N19.16 billion. Operating profit jumped by 126.9 per cent to N11.64 billion in first half 2025 as against N5.13 billion in first half 2024.

With improving midline cost management, pre-tax profit leapt by 148.21 per cent from N4.75 billion in first half 2024 to N11.79 billion in first half 2025. Net profit after tax rose by 166.7 per cent from N3.33 billion to N8.88 billion. With these, earnings per share (EPS) leapt from N1.71 in first half 2024 to N4.55 in first half 2025, providing significant headroom for possible increase in dividend payouts.These investments and visible impact on national economy have endeared NAHCO as one of the most sought after stock at the Nigerian stock market. NAHCO had delivered 1,527 per cent capital gain to investors over the past 12 years, placing it as one of the best performing stocks at the Nigerian stock market.

Technical analysis of share price movements at the Nigerian Exchange (NGX) showed that NAHCO’s share price has risen by 1,527 per cent between August 2013 and August 2025. This represented average annual return of 127.2 per cent.The analysis indicated that NAHCO’s share price, which stood at N6.30 per share on August 20, 2013, closed August 2025 at N102.50 per share.

This implied that an investor who staked N5 million on NAHCO 12 years ago now has about N81.35 million due to capital gains, excluding cash dividends and bonus shares received during the year. NAHCO has more than 72,000 shareholders.Market analysts said stocks like NAHCO underscored wealth-creating and distributing capacity of the stock market, building up significant gain for investors over a period of time.

They pointed out that the success of NAHCO pointed to the indirect wealth distribution of the government’s privatisation programme. Analysts said NAHCO, which was privatised in 2005, has proven to be a reliable company for the investing public.They  attributed NAHCO’s capital gain to the continuing growth in the operations and improvements in the management of the company.With the government’s focus on further diversifying the economy through non-oil sector, NAHCO’s investments in air cargo and its nationwide ground handling operations present a sustainable basis to assume not only steady growth in non-oil exports, but increased returns to shareholders of the company.