NAHCO aims expansion, projects N300bn revenue by 2029

Nigerian Aviation Handling Company (NAHCO) Plc has set a N300 billion total group revenue target within the next five years while aiming to expand its corporate service offerings.

 

The Group Executive Director, International Business & Services of NAHCO, Dr. Sola Obabori, stated this at the company’s ‘Bell Ringing and Facts Behind the Figures’ event held at the Nigerian Exchange (NGX) on Tuesday.

 

In achieving this, Obabori said, “We are embarking on a five-year transformation journey to build a new NAHCO, centered around four key pillars: accelerate growth in business, differentiate with operational excellence, lead with digital, and deliver a transformed people and culture.”

 

He added, “We are committed to achieving specific performance goals by 2029 while simultaneously expanding our service offerings.”

 

On revenue projection, he stated, “The company will achieve N38.49 billion at the end of 2024, N71.12 billion in 2025, N101.93 billion in 2026, N146.07 billion in 2027, N209.34 billion in 2028, and N300 billion in 2029.”

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Speaking further on the subsidiary targets for the group, Obabori explained, “Ground Handling will contribute N120 billion, Cargo Handling will contribute N40 billion, while NAHCO Logistics Services will contribute N36 billion.

 

“Other subsidiaries include NAHCO Free Zone, NAHCO Commodities, NAHCO Travel & Hospitality, and the Aviation Academy, which will contribute N15 billion, N80 billion, N7 billion, and N2 billion, respectively.”

 

He added, “This projected growth trajectory compels us to prioritize operational efficiency and performance improvement.”

 

Obabori pointed out that the African aviation industry has shown remarkable resilience in recovering from the challenges posed by the COVID-19 pandemic, experiencing steady growth in recent years. He said the Nigerian market has exhibited resilience and growth even amidst a challenging economic landscape.

 

He added that NAHCO has consistently demonstrated its ability to capitalize on expanding markets through innovation and adaptation.

 

He further noted that the company is actively taking steps to enhance its performance and operations, adding, “We will prioritize a number of key initiatives aimed at enhancing operational efficiency and significantly improving the company’s financial position.”

 

The Chairman of NAHCO, Seinde Fadeni, stated, “As a company that has consistently paid high dividends over the years, NAHCO will continue to seek higher dividends for its shareholders.

 

“To do that, the company has to increase profitability. To increase profitability, the company is making huge investments in manpower and equipment.”

 

Fadeni noted, “We have been taking delivery of brand-new ground support equipment (GSE) to further enhance our service delivery.

 

“We have a broad plan to replace the few aging pieces of equipment in our fleet by 2025. NAHCO will continually create and take advantage of opportunities to increase shareholders’ value.”

 

Also, the CEO of the Nigerian Exchange, Jude Chiemeka, said, “NAHCO has leveraged the NGX platform to share its financial performance, operational development, and strategic initiatives, as well as providing timely and accurate information to enhance trust among NGX members.”

 

He stated that the company is a leading provider of ground handling services in Nigeria, catering to domestic and international airlines. Established in 1979 as a government-owned entity, “NAHCO was privatized and subsequently listed on the Nigerian Exchange.

 

Today, the company operates within the services sector, which pulls a shareholder base and plays a pivotal role in the aviation industry,” he said.

 

He noted that NAHCO contributed N3.1 billion in taxes in 2023, highlighting its pivotal role in bolstering government revenue and supporting Nigeria’s economic growth.