The rail transportation system in Nigeria is experiencing a surge in popularity, with revenue reaching ₦1.69 billion in the second quarter of 2024. This marks a remarkable 53.14% increase compared to the ₦1.10 billion recorded in the same period last year.
The Nigerian Railway Corporation (NRC) also reported impressive statistics regarding goods transportation. In Q2 2024, approximately 5,940 tons of goods were transported through pipelines, a substantial increase from the 2,856 tons noted in the same quarter of 2023. Revenue generated from goods transported via rail reached ₦537.36 million, reflecting an extraordinary increase of 206.68% compared to ₦175.22 million in Q2 2023.
Moreover, revenue from the movement of goods through pipelines contributed ₦42.08 million in Q2 2024, up from ₦12.81 million in the previous year. Additional revenue sources amounted to ₦994.68 million in Q2 2024, demonstrating a staggering 5,206.68% increase from the ₦18.74 million recorded in the same period last year.
Despite these gains, the first quarter of 2024 saw Nigeria spend 2,470% more on railway debt servicing than it earned from rail service revenue, highlighting ongoing financial challenges within the sector.
In historical context, the NRC achieved record revenues of ₦2.12 billion in the first half of 2021, which was a 31% increase over the same period in 2019, marking a previous record.
While revenue from freight transport has declined, growth has primarily come from passenger transport, particularly along the new standard gauge route between Lagos and Ibadan. This trend indicates a growing public reliance on rail as a viable mode of transportation, paving the way for further investment and improvements in Nigeria’s rail infrastructure.
