NAHCO eyes N300bn revenue in five years

The Nigerian Aviation Handling Company Plc has set a target of N300bn in total group revenue in the next five years.

The Group Executive Director for International Business & Corporate Services at NAHCO, Sola Obabori, made the announcement during the company’s “bell ringing and facts behind the figures” event held in Lagos on Tuesday.

He outlined the company’s focus to achieve its long-term goals, stating, “We are embarking on a five-year transformation journey to build a new NAHCO, centred around four key pillars: accelerate growth in business, differentiate with operational excellence, lead with digital, and deliver a transformed people and culture.”

Obabori also provided detailed projections for the company’s revenue growth, forecasting N38.49bn in 2024, N71.12bn in 2025, N101.93bn in 2026, N146.07bn in 2027, N209.34bn in 2028, and ultimately N300 billion by 2029.

He further broke down the contributions expected from NAHCO’s various subsidiaries: Ground Handling will contribute N120 billion, Cargo Handling N40bn, and NAHCO Logistics Services N36 billion. Other subsidiaries such as NAHCO Free Zone, NAHCO Commodities, NAHCO Travel & Hospitality, and Aviation Academy are expected to contribute N15 billion, N80bn, N7bn, and N2bn, respectively.

Obabori emphasised that the projected growth trajectory would necessitate a strong focus on operational efficiency and continuous performance improvement. “This projected growth trajectory compels us to prioritise operational efficiency and performance improvement,” he said.

Reflecting on the broader industry outlook, Obabori noted the resilience of the African aviation sector, particularly in Nigeria, despite the challenges posed by the COVID-19 pandemic.

“The Nigerian market has exhibited resilience and growth, even amidst a challenging economic landscape,” he stated. He added that NAHCO’s success is attributed to its ability to capitalise on expanding markets through innovation and adaptation.

The Chairman of NAHCO, Seinde Fadeni, also spoke at the event, emphasising 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 do that, we must increase profitability, and to increase profitability, we are making huge investments in manpower and equipment,” Fadeni explained.

Fadeni revealed that the company is in the process of upgrading its ground support equipment and plans to replace older equipment by 2025 to improve service delivery.

“We have been taking delivery of brand-new GSE to further enhance our service delivery. We have a broad plan to replace the few ageing pieces of equipment in our fleet by 2025,” he said.

The Chief Executive Officer of the Nigerian Exchange, Jude Chiemeka, praised NAHCO for leveraging the NGX platform to improve transparency and trust. “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 said.

He also highlighted NAHCO’s contribution to the Nigerian economy, noting 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,” Chiemeka added.