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NAHCO To Acquire N3.5bn Equipment, Eyes N12bn Revenue

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The National Aviation Handling Company Plc (NACHO), the nation’s leading logistics operator, has ordered for N3.5 billion equipment to improve operations just as it targets N12 billion revenue this year as part of its transformation agenda.

Group managing director, NAHCO, Mrs. Olatokunbo Fagbemi, who disclosed this yesterday at the company’s headquarters, said already N1.5 billion of the equipment has been delivered and the rest would arrive before the end of this year.

She said following a review of the NAHCO operations by KPMG in July 2018 which birthed the introduction of the transformation agenda in December 2018 the new management of the company is rejigging NAHCO by replacing legacy equipment with new ones, increase revenue, reduce operational cost and usher in a new people and culture transformation.

This has seen a new work culture with special emphasis on safety, security and quality. “We’ve also embarked on digital transformation using digital platforms and systems by identifying different talents and redistributing same among our 2,200 employees to grow the company. Our plan is to increase our revenue to N12 billion by the end of this year up from about N9 billion from the previous year.

“The export business is growing especially agro exports. We are expanding our processing arrears and warehouses and building new processing centres. We follow laid-down international treaties for processing perishable goods. We are putting platform to support exporters, and we are engaging Nigerian Export Processing Zones Authority (NEPZA) and the quarantine service on this,” she said.

According to Fagbemi, the company is working on diversifying its operational base from air to also cover land and sea. NAHCO has continued to be a leading aviation service provider in Nigeria since 1979 handling mail and cargo traffic. It currently services 36 airlines, 15 airports and controls 63 per cent market share.

On cost cutting measures, she said administrative costs has reduced by 17 per cent due to efficiency in resources utilization. “We expect that by year end there will be more reduction. The rise in the operations cost has been largely due to frequent infrastructure failure at the airport, aging equipment leading to increased maintenance. With the injection of new GSEs and ongoing improvement of airport facilities operating cost will reduce materially.”

On boosting the morale of staff, she said the new management met on wage crisis on ground which it resolved through collaborative engagement with the staff in March this year. “We introduced a town hall meeting approach and we engage our staff regularly. The journey actually started. We work as team and are being as transparent with our employees and stakeholders.

 

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