The Nigerian rail system generated N1.69 billion in revenue from passengers in the second quarter of 2024, representing a significant 53.14% increase compared to N1.10 billion in the same period of 2023. This data was revealed in a recent report by the National Bureau of Statistics (NBS), highlighting the growing demand and performance of the country’s rail sector.
According to the NBS report, a total of 689,263 passengers traveled by rail in Q2 2024, reflecting a 45.38% growth from 474,117 passengers recorded in the corresponding quarter of the previous year. The increase in passenger numbers underscores the rising popularity of rail travel as an alternative mode of transportation across Nigeria.
The report also noted a substantial rise in the volume of goods transported by rail, with 143,759 tons moved in Q2 2024, up from 56,936 tons in Q2 2023. This surge in freight transport highlights the expanding role of the rail network in supporting Nigeria’s logistics and trade sectors.
Additionally, the Nigerian Railway Corporation (NRC) reported that 5,940 tons of goods were transported through pipelines in Q2 2024, up from 2,856 tons in the same period of 2023. This growth reflects the increased utilization of pipelines for goods movement, further diversifying the country’s transport infrastructure.
Revenue generated from goods conveyed via rail reached N537.36 million in Q2 2024, a remarkable 206.68% increase compared to N175.22 million in Q2 2023. The movement of goods through pipelines also contributed positively to revenue, with N42.08 million collected in Q2 2024, compared to N12.81 million in the same period of the previous year.
Other revenue receipts for Q2 2024 amounted to N994.68 million, a staggering 5,206.68% increase from the N18.74 million recorded in Q2 2023. This dramatic rise highlights the improved financial performance of the Nigerian railway sector.
Despite the impressive revenue growth, the report notes that in the first quarter of 2024, Nigeria spent considerably more on servicing the debt incurred for railway development than the revenue generated by the system. Specifically, the country spent 2,470% more on railway debt servicing than it earned from rail services in Q1 2024, raising concerns about the sustainability of its railway investments.
In 2023, the NRC generated N1.07 billion as revenue from passengers, illustrating a steady upward trend in rail sector earnings as the system continues to expand and modernize.
These figures underscore the Nigerian rail system’s growing importance to the country’s transport infrastructure, providing vital passenger and freight services amid ongoing economic challenges. The government’s continued investment in rail and pipeline transport infrastructure aims to enhance efficiency, boost revenue, and support Nigeria’s broader economic development goals.
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