Access to cheap forex crucial to cargo business – NAHCO chairman

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'Our freight is so small. For example, in Nairobi, Kenya, every Boeing 737 plane leaves the city with flowers for Europe and other countries.'

What are the highlights of the results you announced at your Annual General Meeting for the 2022 financial year?

I am pleased to report that our company, just like the industry, remained resilient, performing admirably and achieving some significant milestones, thereby delivering value to our esteemed shareholders. Our group revenue for the year 2022 was N16.7bn, a 63 per cent increase from the previous year’s figure of N10.2bn.

In 2020 when there was Covid-19 pandemic, the prediction by most stakeholders, especially in the aviation industry, was that it would take about four years for the industry to recover fully, but as at last year, most organisations in Nigeria, including the handling companies, have recovered fully from the crisis.Basically, it was strategy and our stakeholders, especially our customers and increase in our excellent service. So, it was about doing what we thought was the right thing.

In some countries, handling companies have leasing companies that give them equipment, while they also form partnerships, is NAHCO thinking along that line? This is a fantastic idea, and like you rightly said, abroad it is easy to do leasing and it is like what happens in housing. I know some oil companies do not buy certain things outright, they lease. In some countries, you don’t need to buy a house, you do mortgage because the interest on some of these things are very low. But, even if you want to do leasing in Nigeria on equipment, the person goes to the bank, takes money at 25 per cent interest rate and leases the equipment.

 

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