NAHCO shareholders seek renewal of pact with RHG

Shareholders of the Nigerian Aviation Handling Company (Nahco, Aviance) have called for the reinstatement and renegotiation of the management support services agreement with the Rose Hill Group (RHG).

RHG is one of the institutional investors of NAHCO Aviance and the pact to provide management services was cancelled in the second quarter of 2016.

The shareholders who spoke at the company’s 36th Annual General Meeting in Abuja said the management services agreement if renewed will add value and bolsters the company’s growth and profitability.

“These types of services are entered in order to grow a company. Most of the multinational companies have this kind of arrangement, and that is why they are growing. It is all based on value addition to the company.

“So on behalf of the shareholders I am calling for the immediate renewal of the agreement with Rose Hill Group,” chairman of the Shareholders’ Trustees Association of Nigeria, Mukhtar Mukhtar, said in an interview.

He said the management service agreement has helped increase the company’s asset.

He said the RHG has brought their expertise to bear on NAHCO as against the hitherto weak bureaucratic system in practice, adding that diversification to other business areas were some of the values the RHG added.

One of NAHCO’s shareholders, Goodluck Akpore of the Onitsha Zone Shareholders Association, also concurred that the technical management service agreement with RHG that was terminated last year be renewed.