By Peter Egwuatu

Shareholders of Nigerian Aviation Handling Company (NAHCO) Plc have advised its Board of Directors to commence move to recapitalise the entity as it continues the diversification plans for enhanced returns. The shareholders at the 34th Annual General Meeting, AGM held in Abuja , commended the Board for declaring dividend for the 2014 financial year despite the harsh operating environment experienced during the period.

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Speaking at the AGM, the shareholders various group leaders who spoke the minds of their members, such as Sir Sunny Nwosu, Chief Timothy Adesiyan, Mr. Oderinde Taiwo, Mr Boniface Okezie, Nonah Awoh etc commended the board and management for the result recorded in the financial year ended December 31, 2014

According to the shareholders “ There is need for the company to inject more capital either by way of rights issue or public offering in view of the huge investment and the diversification being undertaken by it.

The loan from banks is affecting the company in terms of cost. The over N500 million paid to banks as interest and cost on turnover is not the best for the company.

Also, the number of bankers should be reduced. What is the company doing with 13 banks? It is time to reduce the number of banks.” Continuing, the shareholders said “ We commend the board for the 20 kobo per share dividend as well as one for 10 bonus share declared. We also support the diversification process , but do not subscribe to banks’ borrowings.”

Taiwo further cautioned staff of NAHCO  to be very considerate when demanding anything from their management, saying “ incessant strike is not the best for the industry as competition is becoming intense in the aviation sector.” Responding, the Chairman of NAHCO, Mallam Suleiman Yahyah commend the shareholders for their useful comments and advice.

According to him  “We shall look at various options to shore up our capital and choose the best that will maximise returns.  We have kept faith with you by delivering on our promises regardless of the difficult economic situation of the country.”

Continuing, he said “ The year 2014 was , again, very difficult as it recorded one of the greatest mysteries of the aviation sector. The accidents, Ebola, strike between Customs and clearing agents, devaluation of the currency,  etc, all contributed to affect our performance.

On the future of the company, he assured shareholders that the future is bright provided the operating environment improves as foundation for growth, efficiency and sustainability is on course.