The Nigerian Aviation Handling Company Plc, NAHCO Aviance, slashed the salaries of some categories of staff between 10% to 50% for some months to survive COVID-19 pandemic.
The company also suspended promotion and recruitment to reduced its administrative costs, which slashed the liability that would have been incurred.
These were disclosed by the Group Managing Director of the company, Olatokunbo Fagbemi, during the company’s Annual General Meeting (AGM).
Fagbemi noted that within the past year, the management took some unpopular, but inevitable decisions because of the pandemic.
She emphasized that these initiatives by the management resulted in a profitable year, despite the severe challenges in the system.
She said, “Our operating cost decreased by 23% while administrative expenses decreased by 6%. The group earned increase in cargo revenue in the last quarter of 2020, while it also on-boarded new airlines; Skywards Aviation and United Nigeria and handled most of the chartered flights.
“NAHCO received the sum of N76 million as palliative from the Federal Government to cushion the effect of the COVID-19 pandemic.”
The Chairman of the NAHCO Group, Seinde Oladapo Fadeni, assured the shareholders 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 however regretted that the outbreak of the COVID-19 pandemic, which crippled activities in the last financial year affected its performance and approval of higher dividends to the shareholders but expressed optimism that the company would return to the verge of high profit in 2021 financial year.
He said, “We lost half of the year to the pandemic, as during the initial lockdown, the airspace was shut and limited to emergency cargo and evacuation flights.
“Still in 2020, the Nigerian economy shrunk by 3% while inflation rose from 11.4% in 2019 to 12.4%, leading the country into a recession. Also, the uncertainties towards the build-up to the United States election in quarter four and the unabating COVID19 pandemic propelled drops in the world economy with far-reaching implications on Nigeria’s oil exports.”
What you should know about NAHCO
- As at July 30, 2021, the shares of NAHCO were traded at N2.44 on the floor of the NGX.
- NAHCO Aviance also delighted its shareholders by paying a gross dividend of 12.50 kobo per ordinary share of 50 kobo each, amounting to N203 million.