NAHCO Projects N100billion Revenue Target In 5 Years
Nigerian Aviation Handling Company Plc has set a N100 billion revenue target within the next five years.
The projection was made known by the Group chairman of the company, Dr Seinde Fadeni, at the sideline of its Annual General Meeting held in Lagos on Saturday.
In achieving this, the company noted that it had concluded plans to diversify its investment portfolio to create new jobs and contribute significantly to resolving the country’s foreign exchange crisis.
NAHCO which was established in 1979, provides aviation cargo, aircraft handling, passenger facilitation, crew transportation, refuelling and aviation training services from its base at Murtala Muhammed International Airport.
According to Fadeni, the company is convinced that the food export holds significant potential for foreign exchange earnings because of its impact on the livelihoods and prosperity of Nigerians.
He said though the company is navigating safely around the myriad of challenges confronting the air transport space, he urged the government to look at ways to improve airport infrastructure and reduce the financial burden for airlines and passengers to keep pace with the future growth plan.
He said ” NAHCO believes that the government at the centre should work towards reducing the financial burden for airlines and passengers by reviewing applicable taxes. This way, more payees would be brought into the tax net. Not too long ago, the International Air Transport Association declared that Nigerian airports charge foreign airlines about 27 levies.
“This makes Nigerian airports the most expensive in the world, discouraging airlines from flying into the country. This is not the kind of laurel Nigeria should be proud of. It is a disincentive to investment for both active and prospective investors. The government should address this situation. Government should also heed the industry’s calls for the harmonisation of the regulatory environment, particularly at the ports in a way that aligns with global best practices. The nation’s Ease of Doing Business mantra should be in practice and not in theory only.”
He further said that though multiple cost-related challenges characterised 2023, the increased cost of handling an aircraft cannot be easily passed on to the airline by ground handling companies because any proposed rate hike would require the approval of the industry regulator – Nigerian Civil Aviation Authority.
He said, “The very act of getting new rates approved has its challenges as well. It is therefore not uncommon to see ticket prices rising geometrically while ground handling rates charged by service providers to airlines remain solidly stagnant.
“Our push towards birthing a global integrated logistic giant is taking good shape with the coming into operations of new subsidiaries.”
Also speaking, its Group Managing Director/ Chief Executive Officer, Indranil Gupta said the company intends to diversify investment into other sectors of the economy to grow.
“We will continue to leverage our strength and market insights to pursue organic and strategic growth initiatives to expand our market presence and revenue streams
“We plan to comprehensively refresh our fleet of ground support equipment to replace ageing equipment and increase the numbers in our fleet to meet the ever-increasing customer needs and expectations.
“We are already embracing digitalisation and innovation, investing in cutting-edge technologies and solutions to enhance our service offerings, operational efficiency and competitiveness. By harnessing the power of data analytics, automation and predictive maintenance, we aim to stay ahead of the industry trends and deliver superior value to our clients ”
