Investors in Nigerian Aviation Handling Company (NAHCO) Plc have enjoyed exceptional returns, with a N1 million investment in the firm 12 years ago now worth over N21.5 million, underscoring the company’s consistent capital appreciation.
The figure, which means approximately 2000 per cent capital gain, excludes cash dividends that have been distributed over the years. A review of stock market data between August 20, 2013 and August 20, 2025, shows that a N1 million investment has grown to N21.5 million in share value, which represents an average annual return of 170.64 per cent.
The valuation includes the impact of two bonus share issues carried out during the period, but excludes cash dividends, for which the company is noted to have maintained regularly.
Privatised in 2005, NAHCO now boasts over 72,000 shareholders and ranks among the top-performing stocks on the Nigerian Exchange (NGX). Its cumulative capital gain of 2,048 per cent over 12 years is more than six times the 287.23 per cent gain recorded by the benchmark all-share index (ASI) over the same period. On average, NAHCO delivered an annual capital gain of 170.64 per cent compared with the market’s 23.94 per cent.
When the two bonus issues are factored in, the total value of the holdings reflects the 2,048 per cent cumulative gain. By contrast, the ASI advanced from 36,558.5 points in 2013 to 141,566.31 points in 2025.
Operators described NAHCO’s performance as a clear example of the wealth-creating potential of the Nigerian stock market. They argue that its success highlights the indirect benefits of the government’s privatisation programme, which has allowed companies like NAHCO to attract
investment, strengthen operations, and reward shareholders.
They attribute the company’s impressive gains to growth in core operations and improved management. Managing Director of GTI Capital Limited, Kehinde Hassan, said the correlation between fundamentals and share price movements can be likened to the relationship between a building’s foundation and its strength.
He explained that while the market may be swayed in the short term by emotions or macroeconomic shifts, the ultimate driver of long-term value remains a company’s fundamentals, such as earnings per share, revenue growth, profit margins, return on equity and dividend payout.
Managing Director of HighCap Securities, David Adonri, noted that NAHCO’s performance underlined its strong fundamentals. He stressed that the capital market is information-driven, with both company-specific and macroeconomic factors shaping prices. A stock like NAHCO, he said, has appreciated heavily because of its sound fundamentals, high dividend yield and consistent payouts, which align market value with intrinsic performance over time.
Recent financial results further reinforce this outlook. In the first half of 2025, NAHCO doubled revenue to N32.33 billion from N16 billion in the corresponding period of 2024, while net profit jumped by 166.7 per cent to N8.88 billion.
Its gross profit rose by 117.73 per cent to N19.16 billion, operating profit surged by 126.9 per cent to N11.64 billion and pre-tax profit increased by 148.21 per cent to N11.79 billion.
Earnings per share climbed from N1.71 kobo to N4.55 kobo, strengthening the company’s capacity for dividend payout. Group Managing Director, Olumuyiwa Olumekun, added that NAHCO’s diversification and expansion strategy would sustain growth, positioning the company not only as a ground handling leader but as a total logistics provider. He highlighted the recent commissioning of the NAHCO Export Packaging and Processing Centre in Lagos as part of efforts to enhance Nigeria’s competitiveness in global trade.
