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Nigerian airports are the most expensive in the world – NAHCO

Nigerian airports are the most expensive in the world– NAHCO

The Nigerian Aviation Handling Company Plc (NAHCO) has announced an ambitious revenue goal of N100 billion to be achieved within the next five years. This objective was disclosed by the Group Chairman, Dr. Seinde Fadeni, during the company’s Annual General Meeting in Lagos on Saturday.

Dr. Fadeni highlighted that NAHCO plans to diversify its investment portfolio to create new jobs and significantly alleviate the country’s foreign exchange crisis. Founded in 1979, NAHCO offers a range of services including aviation cargo handling, aircraft handling, passenger facilitation, crew transportation, refueling, and aviation training, primarily operating from Murtala Muhammed International Airport.

Emphasizing the potential of food exports for generating foreign exchange, Dr. Fadeni stressed the importance of this sector for enhancing the livelihoods and prosperity of Nigerians. Despite numerous challenges in the air transport sector, he urged the government to improve airport infrastructure and reduce financial burdens on airlines and passengers to support NAHCO’s growth ambitions.

Dr. Fadeni pointed out that the central government should consider reducing the financial burdens on airlines and passengers by reviewing applicable taxes, which could increase the tax net. He noted that the International Air Transport Association recently highlighted that Nigerian airports impose around 27 levies on foreign airlines, making them the most expensive globally and deterring airlines from operating in Nigeria. This issue, he suggested, must be addressed to attract investment from both current and prospective investors. Additionally, he called for the government to harmonize the regulatory environment at the ports to align with global best practices, ensuring that the nation’s Ease of Doing Business initiative is effectively implemented.

Addressing the cost-related challenges of 2023, Dr. Fadeni explained that the increased costs of aircraft handling cannot be easily transferred to airlines due to the requirement for rate hike approvals from the Nigerian Civil Aviation Authority. He noted that securing new rates is challenging, leading to ticket prices rising while ground handling rates remain stagnant. He also mentioned that NAHCO’s vision of creating a global integrated logistics giant is progressing well with the establishment of new subsidiaries.

Indranil Gupta, Group Managing Director/CEO of NAHCO, expressed the company’s intention to diversify investments across other economic sectors to drive growth. He highlighted that NAHCO plans to leverage its market insights and strengths to explore both organic and strategic growth opportunities, thereby expanding its market presence and increasing revenue streams.

Gupta also outlined plans to upgrade NAHCO’s ground support equipment fleet to meet growing customer demands. He emphasized that the company is embracing digitalization and innovation, investing in cutting-edge technologies and solutions to enhance service offerings, operational efficiency, and competitiveness. By utilizing data analytics, automation, and predictive maintenance, NAHCO aims to stay ahead of industry trends and deliver superior value to its clients.

This Article is Fact-Checked. See Policy.

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