NAHCO eyes N300bn revenue on new growth plan

Nigerian Aviation Handling Company (NAHCO) Plc has said it is launching a new five-year growth plan that will strengthen existing businesses and open up new opportunities, targeting N300 billion revenue.

The firm unveiled the five-year plan at a closing gong ceremony and Facts Behind the Figures presentation at the Nigerian Exchange (NGX) recentlly in Lagos.

Seinde Fadeni, chairman of Nigerian Aviation Handling Company (NAHCO) Plc, said the company has the potential to achieve its target of N300 billion revenue by the next five years, given ongoing investments and numerous emerging opportunities.

He stated that the group has demonstrated resilience over the years, citing significant growths in turnover and profitability.

“As a company that has consistently paid high dividends over the years, NAHCO Plc 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 make huge investments in manpower and equipment.

“Only last week and continuing this week, 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 ageing equipment in our fleet by 2026. NAHCO will continually create and take advantage of opportunities to increase shareholders’ value,” he said.

He reiterated the company’s commitment to the ideal of good corporate governance and sustainable growth, assuring that the board would continue to provide the enablement for the management team to deliver the group’s strategic goals.

Sola Obabori, group executive director of international business and corporate services at Nigerian Aviation Handling Company (NAHCO) Plc, outlined that the company would sustain progressive growths in sales and profitability over the next five years.

He projected that turnover would rise successively to 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 N300 billion by 2029.

He further explained that the group’s forecast was based on expectations that all subsidiaries would witness continuing growth.

According to the breakdown, the N300 billion revenue target is premised on a turnover of N120 billion from the main ground handling business, N40 billion from cargo handling, N36 billion from NAHCO Logistics Services while NAHCO Free Zone, NAHCO Commodities, NAHCO Travel & Hospitality and Aviation Academy will contribute N15 billion, N80 billion, N7 billion and N2 billion respectively.

“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,” Obabori said.

He assured that the group is committed to achieving specific performance goals by 2029, while simultaneously expanding its service offerings.

He also said the projected growth trajectory compels the company to prioritize operational efficiency and performance improvement.

Jude Chiemeka, chief executive officer of Nigerian Exchange (NGX), said NAHCO has demonstrated its ability to navigate the operating environment successfully.

He said NAHCO’s results were quite commendable, especially in the light of the operating environment.

“NAHCO contributed N3.1 billion in taxes in 2023, highlighting its pivotal role in bolstering government revenue and supporting Nigeria’s economic growth,” he stated.