A N100bn revenue target has been set by the Nigerian Aviation Handling Company Plc (NAHCO) to be achieved in 5 years.
Dr. Seinde Fadeni, the Group Chairman made this known at the sideline of its Annual General Meeting held in Lagos last Saturday.
In doing so, the business reported that it had completed preparations to diversify its investment portfolio to generate employment and make a substantial contribution to the resolution of the nation’s foreign exchange problem.
Making national news, from its base at Murtala Muhammed International Airport, NAHCO, which was founded in 1979, offers services for aviation freight, aircraft handling, passenger facilitation, crew transportation, refuelling, and aviation training.
Fadeni states that the corporation is certain that food exports have a large potential for foreign exchange revenues due to their influence on the well-being and standard of living of Nigerians.
Even though the company is securely navigating the many obstacles facing the aviation industry, he asked the government to consider measures to enhance airport infrastructure and lessen the cost of operating a plane for both travellers and airlines to stay up with the company’s expansion goal.
According to him, “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.”
Furthering, he said that even though 2023 was marked by several cost-related issues, ground handling companies would find it difficult to pass on the increased cost of operating an aircraft to the airline because any proposed rate increase would need to be approved by the Nigerian Civil Aviation Authority, the industry regulator.
Fadeni also stated “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.”
Indranil Gupta, the business’s Group Managing Director and Chief Executive Officer, also spoke during the event and stated that the company plans to grow by diversifying its investments into other economic areas.
He said, “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.”
