LAGOS,Nigeria (VOICE OF NAIJA) – The Nigerian Aviation Handling Company Plc (NAHCO) at its Annual General Meeting in Lagos, has set a revenue target of N100 billion to reach in the next five years.
During the meeting, the Group Chairman of the company, Dr. Seinde Fadeni, emphasised the company’s commitment to diversifying its investment portfolio to generate new employment opportunities and address the country’s foreign exchange challenges.
Established in 1979, NAHCO operates from its base at the Murtala Muhammed International Airport, offering a range of aviation services including cargo handling, aircraft handling, passenger facilitation, crew transportation, refuelling, and aviation training services.
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Dr. Fadeni emphasized the significant potential of food exports for earning foreign exchange, underscoring its positive impact on the livelihoods and prosperity of Nigerians.
While acknowledging the myriad challenges facing the air transport sector, he emphasized that the company is navigating them safely.
However, he urged the government to explore ways to enhance airport infrastructure and alleviate financial burdens on airlines and passengers to align with the future growth plan.
He said “ 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.
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“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.”
He further noted that despite the numerous cost-related challenges experienced in 2023, the increased cost of handling an aircraft cannot be simply transferred to the airline by ground handling companies, this is because any proposed rate hike would necessitate approval from the industry regulator, the Nigerian Civil Aviation Authority.
He said “ 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.”
Also addressing the gathering, the Group Managing Director/Chief Executive Officer, Mr. Indranil Gupta, expressed the company’s intention to diversify its investments into other sectors of the economy as a strategy for growth.
“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.”