Nigeria’s foremost indigenous transport line, ABC transport, may become a casualty of Nigeria’s harsh economic realities, losing N118.751 million in the first quarter of 2016.
According to its 2016 first quarter results, the group’s loss before taxation stood at N106.3 million as against a profit of N39.3 million reported just 12 months ago.
The company, which was incorporated in April 1993, saw its revenue plunge from N1.71 billion in March 2015 to N1.55 billion at the end of March 2016.
A source privy to the operations of the company told TheCable that the business is struggling to cope with the prevailing business environment in Nigeria.
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“ABC didn’t perform too well in the last few months, just like the rest of the economy. We are struggling to keep our head above the water, assured that this phase would pass,” he said.
“One should also consider that travels were relatively limited, owing to the condition of the nation. Besides Easter travels were not covered in the report you saw.
“Fuel scarcity compounded issues too. ABC hopes to improve as the year goes by, December travels are next to inevitable.”
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The company’s business is road passenger transportation between major cities in Nigeria, crossing the south, north central and Abuja.
In July 2004, ABC transport commenced road passenger transportation on the west coast between Lagos, Nigeria and Accra, Ghana.
ABC Transport Ghana, in which ABC Transport Plc owns a 99 percent equity stake, was incorporated in 2007 to provide transport services within Ghana and to offer passenger and cargo handling service to ABC Transport Plc.
ABC Transport Plc is also involved in cargo business across the road passenger network and hospitality business at its City Transit Inn (CTI).
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The business is also said to be facing fierce competition from newcomers within the transport sector, especially those with newer fleet.
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