The Nigerian rail system saw a significant boost in revenue in the second quarter of 2024, generating N1.69 billion from passenger services, representing a 53.14% increase compared to N1.10 billion recorded during the same period in 2023. This data was disclosed in a report released on Thursday by the National Bureau of Statistics (NBS).
According to the report, a total of 689,263 passengers traveled via rail during Q2 2024, reflecting a 45.38% growth from the 474,117 passengers recorded in Q2 2023. This sharp rise in passenger numbers underscores the growing reliance on Nigeria’s rail system as a key mode of transportation.
In addition to passenger transport, the movement of goods by rail saw an equally impressive surge. A total of 143,759 tons of goods were transported during Q2 2024, compared to 56,936 tons in the corresponding quarter of 2023. This 152% increase highlights the growing role of rail freight in Nigeria’s logistics sector.
The Nigerian Railway Corporation also reported a noteworthy rise in the volume of goods transported through pipelines, with 5,940 tons moved in Q2 2024, compared to 2,856 tons in the same period of 2023. This increase further underscores the broader improvements in Nigeria’s transportation infrastructure.
Revenue from goods transported by rail grew to N537.36 million in Q2 2024, a remarkable 206.68% increase from N175.22 million in Q2 2023. Similarly, pipeline transportation contributed N42.08 million in revenue, a significant jump from the N12.81 million reported in the same quarter of the previous year.
Other revenue streams also recorded exponential growth, with receipts totaling N994.68 million in Q2 2024. This figure represents an astounding 5,206.68% rise compared to the N18.74 million reported in the same period in 2023, driven by improvements in operational efficiency and demand for railway services.
Despite this revenue growth, the Nigerian railway system faces financial challenges. In the first quarter of 2024, it was reported that Nigeria spent significantly more on servicing the debt incurred for building its railways than the revenue generated from rail services. According to The PUNCH, the country spent 2,470% more on railway debt servicing than it made in revenue during the first quarter.
In 2023, the Nigerian Railway Corporation generated N1.07 billion from passenger revenue, showcasing a steady upward trajectory in the country’s rail transport sector. However, the challenge of balancing revenue generation with debt servicing obligations remains a significant issue for the government as it seeks to expand and modernize its railway infrastructure.
As Nigeria continues to develop its transport infrastructure, the rail system’s growth highlights the potential for further contributions to the nation’s economy, although financial hurdles remain on the horizon.
