The Nigerian Aviation Handling Company (NAHCO) Plc is targeting a total group revenue of N300 billion within the next five years.
Dr Sola Obabori, the Group Executive Director, International Business & Corporate Services of NAHCO, stated this at the company’s bell ringing and Facts Behind the Figures’ at the Nigerian Exchange Ltd., on Tuesday in Lagos.
Obabori said the company would embark on a five-year transformation journey to achieve the revenue target.
“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.”
“We are committed to achieving specific performance goals by 2029, while simultaneously expanding our service offerings,” he said.
On revenue projection, he stated that “the company will achieve N38.49 billion at the end of 2024, N71.12 in 2025, N101.93 billion in 2026, N146.07 billion in 2027, N209.34 billion in 2028 and N300 billion in 2029.”
On subsidiary target to the group, Obabori explained that “Ground Handling would contribute N120 billion: Cargo Handling to contribute N40 billion, while NAHCO Logistics Services would contribute N36 billion.
“Others subsidiaries are NAHCO Free Zone, NAHCO Commodities, NAHCO Travel & Hospitality, Aviation Academy will contribute N15 billion, N80 billion, N7 billion and N2 billion.”
He said that the company would prioritise operational efficiency to achieve the projected growth.
Obabori said the African aviation industry had shown remarkable resilience in recovering from the challenges posed by the COVID-19 pandemic, experiencing steady growth in recent year, saying that the Nigerian market exhibited resilience and growth, even amidst a challenging economic landscape.
He added that NAHCO had consistently demonstrated its ability to capitalise on expanding markets through innovation and adaptation.
He said that the company was actively taking steps to enhance its performance and operations.
He added that “we will prioritise a number of key initiatives aimed at enhancing operational efficiency and significantly improving the company’s financial position.”
The chairman of NAHCO, Mr Seinde Fadeni, stated that the company had consistently paid high dividends over the years.
Fadeni said that NAHCO would 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.
“We have been taking delivery of brand new ground support equipment to further enhance our service delivery.
“We have a broad plan to replace the few ageing equipment in our fleet by 2025. NAHCO will continually create and take advantage of opportunities to increase shareholders’ value,” he said.
Also, the CEO of Nigerian Exchange Ltd., Mr Jude Chiemeka, said, “NACHO has leveraged NGX platform to share its financial performance, operational development, strategic initiatives as well as providing timely and accurate information to enhance trust among the NGX members.”
“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 has 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.
