The Nigerian Aviation Handling Company Plc (NAHCO) has set its sights on a lofty goal: achieving a revenue target of N100 billion within the next five years. This ambitious plan was unveiled by Dr Seinde Fadeni, the Group Chairman, during the company’s Annual General Meeting held in Lagos.
NAHCO recognizes that reaching this target requires more than just business as usual. The company is actively pursuing a diversification strategy to expand its revenue streams and create new employment opportunities. One key area of focus is the burgeoning food export sector. NAHCO believes that supporting food exports holds immense potential to boost foreign exchange earnings and empower Nigerians economically.
While confident in its future, NAHCO acknowledges the current challenges plaguing the air transport industry. Dr. Fadeni emphasized the urgent need for improved airport infrastructure. He called upon the government to prioritize infrastructure development to accommodate future growth and reduce the financial burden on airlines and passengers.
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A significant concern for NAHCO is the high cost of operating at Nigerian airports. Dr Fadeni pointed out that foreign airlines are subject to a staggering 27 different levies, making Nigerian airports the most expensive globally. This discourages airlines from entering the Nigerian market, hindering investment and growth. NAHCO urges the government to review applicable taxes and streamline regulations across the aviation sector, aligning practices with global best practices. This, they believe, would incentivize investment and encourage wider participation in the tax net.
NAHCO also highlighted the difficulties faced by ground-handling companies due to rising operational costs. While the cost of handling aircraft has increased, regulations make it challenging to pass these hikes on to airlines. NAHCO is actively looking for ways to improve efficiency and is committed to investing in a comprehensive refresh of its ground support equipment fleet. This modernization will not only replace ageing equipment but also expand NAHCO’s capacity to meet growing customer demands.
NAHCO recognizes the importance of innovation in today’s competitive landscape. The company is actively embracing digitalization by investing in cutting-edge technologies and solutions. This includes data analytics, automation, and predictive maintenance. By leveraging these advancements, NAHCO aims to enhance its service offerings, operational efficiency, and overall competitiveness, ensuring it remains at the forefront of the industry and delivers superior value to its clients.
NAHCO’s growth strategy is multifaceted. It combines diversification into new sectors, infrastructure improvements, cost reduction initiatives, technological advancements, and equipment upgrades. By executing this comprehensive plan, NAHCO is confident in achieving its ambitious revenue target and solidifying its position as a leading player in the Nigerian aviation sector.
