Nigeria’s latest economic report showed that non-oil sector continued to outperform the oil sector, with steady growths across the sectors sustaining strong economic momentum. The Gross Domestic Product (GDP) report underlines the huge potential of the non-oil sector to achieving government’s ambitious $1 trillion economy. In this report, Deputy Group Business Editor, Taofik Salako, examines how investments in air cargo and ground handling operations have become major boosts for the country’s non-oil exports
Nigeria’s economy remains on a steady growth path. The latest Gross Domestic Product (GDP) report released by the National Bureau of Statistics (NBS) indicated that the economy further expanded by 3.98 per cent in third quarter 2025. This compared with 3.9 per cent recorded in third quarter 2024. The economy had grown by 4.32 per cent in second quarter 2025.
The third quarter 2025 growth was driven by both oil and non-oil sectors. Non-oil sector, which contributed 96.6 per cent of total output, rose by 27 basis points to 3.91 per cent in third quarter 2025, an increase of 27 basis points on 3.64 per cent recorded in second quarter 2025. The oil sector, which accounted for about 3.4 per cent of total output, expanded by 5.8 per cent in third quarter 2025, with oil production averaging 1.64 million barrels per day (mbpd) during the period.
The report underlined stronger momentum in agriculture, industry, and services as main drivers of the non-oil sector’s performance. Agricultural output, the largest contributor to the GDP with 31.21 per cent, grew by 3.79 per cent, 97 basis points on 2.82 per cent growth recorded in second quarter 2025. Trade, the second largest contributor with 16.42 per cent, expanded by 1.98 per cent in third quarter 2025 as against 1.29 per cent in second quarter 2025.
While the GDP report showed broad growths across all the sectors, analysts were unanimous that non-oil sector was the main driver of the overall robust economic outlook. Analysts at Afrinvest West Africa said Nigeria’s economic growth “remains heavily anchored on non-oil sectors, reflecting both the resilience and structural diversification of the Nigerian economy”.
Coronation Group said the GDP performance reflected strong rebound in agriculture, which helped to offset oil weakness.
Afrinvest noted that growth in agriculture sector was driven by the main harvest season and cash and food crops export earnings.
Coronation said the GDP third quarter 2025 report “reaffirms Nigeria’s gradual transition toward a more diversified, non-oil-driven growth structure, even as macroeconomic conditions remain shaped by inflation, foreign exchange (forex) dynamics, and ongoing policy adjustments”.
Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf said the overall outlook of the GDP report confirmed that the economy remains firmly on a path of steady recovery and consolidation.
“The third quarter 2025 performance highlights the positive impact of ongoing economic reforms, especially in stabilising the exchange rate, moderating inflation, improving fiscal conditions, and gradually restoring investor confidence. These macroeconomic gains have strengthened business sentiment and supported activity across key sectors of the economy,” Yusuf said.
He said the steady growth demonstrated that the government’s reform programme is beginning to generate tangible and measurable outcomes across the economy.
Exports Processing
Industry analysts have also highlighted the positive impact of private sector’s investments in air cargo and ground handling operations on the expansive growth in non-oil sector. For instance, since the launch of NAHCO Export Processing and Packaging Centre (NEPPC), owned by Nigerian Aviation Handling Company (NAHCO) Plc, in July 2025, there has been an upsurge in non-oil exports.
The NEPPC serves as a state-of-the-art value-added operational centre designed to strengthen Nigeria’s air-export capacity; particularly perishable commodities. Operationally, NEPPC functions as a one-stop export centre, working in close coordination with key regulatory and facilitation agencies such as the Nigeria Agricultural Quarantine Service (NAQS), Nigeria Customs Service (NCS), National Agency for Food and Drug Administration and Control (NAFDAC), National Drug Law Enforcement Agency (NDLEA) and other regulatory bodies and the airlines.
The coordinated process ensures that all shipments passing through the centre adequately scrutinised to be safe, compliant, and export-ready before dispatch. The result has been a measurable reduction in cargo dwell time, minimisation of re-handling, and a consistent improvement in the integrity and traceability of perishable air freight shipments.
NEPPC thus bridges a long-standing gap in Nigeria’s export logistics value chain, providing the infrastructure and technical support that many small and medium-scale exporters have historically lacked. By centralising export processing and introducing global best practices in handling and inspection, NEPPC not only raises the operational standards of Nigerian exporters to meet international regulatory requirements such as European Union and GCC standards, but also enhances the country’s credibility and competitiveness in the global perishables market.
NEPPC has transformed the export experience from fragmented and reactive process to integrated, compliant, and efficient system, thus positioning Nigeria to capture greater value from its agro-export sector through reliable air cargo connectivity.
The International Trade Centre’s (ITC) Export Potential Map recently indicated that Nigeria’s total export potential to the world stands at $7.6 billion, driven primarily by strong opportunities agricultural exports. The ITC report showed that key agricultural produce-cocoa, cashew, urea and coffee, have significant headroom for growth, putting Nigeria in a position to unlock billions of dollars in additional export revenue.
In the last quarter, NAHCO launched additional multi-million dollar equipment as part of ongoing total refleeting programme. Chairman, Nigerian Aviation Handling Company (NAHCO) Plc, Dr. Seinde Fadeni said the essence of these equipment was not just for the company alone, but as a strategic investment in Nigeria’s economy.
The new batch of multi-million-dollar ground support equipment (GSE) were expected to enhance ground handling operations countrywide.
He reiterated the plan of the board to ensure that the company boasts of more than adequate equipment by the end of this year.
Fadeni disclosed that the process for acquiring the new equipment started last year, but the company had to endure delivery delays while the manufacturer finishes producing and shipping to Nigeria.
He said: “The essence of these equipment is not just for the company alone or for the customers, it is also to make life easier for the workers. I can confirm to you that we have a lot in our cap, and we’re bringing them out one by one”.
Group Managing Director, Nigerian Aviation Handling Company (NAHCO) Plc, Mr Olumuyiwa Olumekun, said NAHCO has positioned itself at the growth end of the Nigeria’s economy with its expansive investments in export processing and warehouses across the country.
He noted that the massive NAHCO Export Packaging and Processing Centre in Lagos was a first of its kind in Nigeria and a deliberate strategy for sustainable benefits to all stakeholders.
According to him, across its operations, NAHCO is adding values to the Nigerian economy and all stakeholders, while ensuring competitive returns to shareholders.
He said the group remains focused on four areas of sustained growth, equipment re-fleeting, digitisation and environmental social governance (ESG) to ensure better performance in the period ahead.
He explained that the diversified nature of the group and the onboarding of new business ventures would ensure that the group sustain its growth trajectory.
“Since transiting from being the foremost ground handling service provider in the entire sub-region to being a diversified, total logistics group, we have been driven by the earnest desire to provide unmatched level of excellent service delivery to our clients. This commitment has become more urgent as we seek to satisfy new demands for excellence and to improve shareholder value,” Olumekun said.
He noted that NAHCO is a leader in Nigeria’s aviation environmental, social, governance (ESG)’s compliance.
Experts have noted the need for air cargo hubs to consider green freight initiatives such as sustainable aviation fuels, carbon-offset programmes and efficient handling as global supply-chains increasingly embed ESG metrics. With this, NAHCO is clearly well positioned to drive Nigeria’s non-oil sector sustainably.
Chief Operating Officer, Nigerian Aviation Handling Company (NAHCO) Plc, Mr. Didier Stuellet said the huge investments demonstrated the commitment of the company to long-term growth.
“It’s a huge investment. We’re talking about millions, not in naira, but in dollars, and so this is always difficult for the owners of a company like this to take a decision like this; to take the best decision. This is the best decision for NAHCO,” Stuellet said.
He said the company would make complete refleeting of equipment happen in the long term, adding that NAHCO is more than halfway into that process.
He said: “We still have some equipment coming in the coming months, years”.
Head, Ground Support Equipment (GSE), Nigerian Aviation Handling Company (NAHCO) Plc, Mr. Charles Karinga noted that the acquisition of nine brand new high loaders by NAHCO was a huge one in the history of Nigerian aviation and that not many ground handling service providers in the region could acquire so many equipment at the same time.
He described a high loader as a ground support equipment, equipped with a high-reach lift mechanism to load or unload items, cargo, food, drinks, cleared for air transportation.
“Buying this number of high loaders at this same time is not something that is normally done by many handlers in this clime because they are very expensive. This is the first time this would be happening,” Karinga said.
He also pointed out that the brand of the equipment deployed by the company is one of the very best in the industry and would serve the company and its airline clients for several years.
The increased economic and operational activities have also impacted the corporate results of NAHCO.
Corporate facts as economic indicators
The nine-month results of NAHCO for the period ended September 30, 2025 released at the Nigerian Exchange (NGX) showed strong growths across sales and profitability, with a 47 per cent increase in net earnings underlining the increased capacity of the leading aviation handling and logistics group to sustain improved returns to shareholders.
The report showed that total revenue rose by 40.7 per cent from N33.95 billion in third quarter 2024 to N47.76 billion in third quarter 2025, driven by renewed and new business contracts and expanding business activities across the subsidiaries. Gross profit rose by 37.1 per cent to N28.43 billion in third quarter 2025 as against N20.74 billion in third quarter 2024, showing top-line cost efficiency despite domestic and global inflationary pressures.
Operating profit jumped by 40.8 per cent from N12.88 billion to N18.14 billion, underlining the fact that the performance of the company was driven by business operations rather than financial or structural management. Profit before tax leapt by 46 per cent to N17.94 billion in third quarter 2025 compared with N12.29 billion in third quarter 2024.
After taxes, net profit stood at N13.46 billion, representing a remarkable increase of 46.6 per cent on N9.18 billion recorded in comparable period of 2024. With this, earnings per share increased simultaneously from N4.71 to N6.91, providing significant headroom for the group to sustain higher dividend payouts, even by the third quarter.
The balance sheet of the group also remained strong with total assets rising from N46.95 billion in December 2024 to N48.64 billion by September 2025. Shareholders’ funds also increased from N20.04 billion in December 2024 to N21.92 billion in September 2025.
The third quarter 2025 report places NAHCO, which had increased dividend payout by 134 per cent for the 2024 business year, in stronger stead to sustain its upwardly investor-friendly dividend policy. It should be recalled that NAHCO had distributed N11.58 billion as cash dividends for the 2024 business year, representing a dividend per share of N5.94, compared with N4.95 billion paid for the 2023 business year.
Yusuf said the government must further enhance Nigeria’s non-oil export competitiveness by providing incentives to producers and operators.
According to him, government needs to support exporters with reduced financing and production costs while strengthening export logistics, certification, and standards.
“With continued reforms, targeted investments, and strengthened governance, Nigeria is well-positioned to deliver stronger economic outcomes in the months ahead,” Yusuf said. With the $1 trillion economy agenda anchored on further diversification of the economy through non-oil sector, NAHCO’s investments in air cargo and its nationwide ground handling operations provide sustainable basis to assume not only steady growth in non-oil exports, but increased returns to shareholders of the company.
