NAHCO targets N300bn revenue in five years
The Nigerian Aviation Handling Company Plc (NAHCO) has set an ambitious target to achieve N300 billion in total group revenue over the next five years.
Sola Obabori, the Group Executive Director for International Business & Corporate Services at NAHCO, made the announcement during the company’s “bell ringing and facts behind the figures” event in Lagos on Tuesday.
He outlined the company’s strategy to achieve this goal, focusing on four key pillars: accelerating business growth, enhancing operational excellence, leading with digital initiatives, and transforming the company’s people and culture.
Obabori provided detailed projections for NAHCO’s revenue growth, forecasting N38.49 billion in 2024, N71.12 billion in 2025, N101.93 billion in 2026, N146.07 billion in 2027, N209.34 billion in 2028, and ultimately N300 billion by 2029.
He also highlighted the contributions expected from NAHCO’s various subsidiaries: Ground Handling is projected to contribute N120 billion, Cargo Handling N40 billion, and NAHCO Logistics Services N36 billion.
Other subsidiaries, including NAHCO Free Zone, NAHCO Commodities, NAHCO Travel & Hospitality, and the Aviation Academy, are expected to contribute N15 billion, N80 billion, N7 billion, and N2 billion, respectively.
Obabori emphasised the importance of operational efficiency and continuous performance improvement to meet these revenue targets. “This projected growth trajectory compels us to prioritise operational efficiency and performance improvement,” he explained.
Reflecting on the broader industry outlook, Obabori praised the resilience of the Nigerian aviation sector, particularly despite the challenges posed by the COVID-19 pandemic.
He noted, “The Nigerian market has exhibited resilience and growth, even amidst a challenging economic landscape,” and attributed NAHCO’s success to its ability to innovate and adapt to changing market demands.
NAHCO’s Chairman, Seinde Fadeni, also spoke at the event, reiterating the company’s commitment to enhancing shareholder value.
“As a company that has consistently paid high dividends, NAHCO will continue to seek higher dividends for its shareholders. To achieve this, we must increase profitability, which requires substantial investments in both manpower and equipment,” Fadeni stated.
Fadeni revealed that NAHCO is in the process of upgrading its ground support equipment, with plans to replace older equipment by 2025 to improve service delivery.
The CEO of the Nigerian Exchange, Jude Chiemeka, praised NAHCO for leveraging the NGX platform to improve transparency and trust. He noted, “NAHCO has leveraged the NGX platform to share its financial performance, operational developments, and strategic initiatives, thereby providing timely and accurate information to enhance trust among NGX members.”
Chiemeka also acknowledged NAHCO’s contribution to the Nigerian economy, highlighting that the company paid N3.1 billion in taxes in 2023. “NAHCO plays a pivotal role in bolstering government revenue and supporting Nigeria’s economic growth,” he added.
