…cargo traffic grows by 102%

The Nigerian Railway Corporation (NRC) recorded a decline of 32.08% in passenger traffic in 2023 as the number of passengers fell to 2.41 million as against 3.21 million passengers that used the rail system in 2022, the latest data on rail movements from the National Bureau of Statistics (NBS) have shown.

On the contrary, the volume of cargo transported by the corporation rose by 102.04 percent to 317,244 tons, compared to 157,024 tons in 2022, showing that Nigerian individuals and businesses have started showing considerable interest in rail transportation systems in the country.

Both the Federal and some state governments in Nigeria have invested in rail services, as top-notch services are now being provided to meet the varying tastes of Nigerians and to make domestic rail services be at par with others in developed countries.

Stakeholders have expressed the view that the expansion and modernisation of the rail network have the potential to revolutionise the agricultural sector by reducing transportation costs, improving market access for farmers and stimulating economic growth in rural areas. By providing a cheaper and more efficient means of transporting goods, the railway system has the potential to boost agricultural productivity, reduce post-harvest losses, and enhance food security across the nation.

A case in point is that of the Lagos State Government which has invested in rail services to the delight of many Lagosians, thus having the positive effect on movement of goods and workers across Nigeria’s largest sub national government.

Other performance indicators showed mixed results during the year under review.

The revenue generated from these passengers in 2023 was N4.42 billion, representing a decline of 2.64 percent when compared to N4.54 billion made in the previous year.

On the contrary, the revenue generated from goods/cargo movement in 2023 amounted to N1.079 billion, whereas it was N441.74 million in 2022.

NRC also made N565.84 million from other income sources as against N607.80 million in 2022.

On a quarter-on-quarter basis, the number of passengers that used the nation’s rail transport system was 441,725 in Q1 2023; 474,117 in Q2 2023; 594,348 in Q3 2023 and 672,198 in Q4 2023.

In 2022, it was 953,099 in Q1; 422,393 in Q2, 500,348 in Q3, and 1.34 million in Q4 2023.

Conversely, the volume of goods and cargo transported via rail experienced a remarkable upswing. In Q4 2023, the volume reached 119,286 tons, marking a substantial increase from the 53,136 tons recorded in the same quarter of the previous year.

At the end of the first quarter of 2023, the nation’s rail system moved 59,966 tons of cargos; 56,029 tons in the second quarter and 81,963 tons at the end of the third quarter of 2023.

The performance of the Nigerian railway system has broader implications for the country’s economy, particularly in terms of transportation of goods and agricultural produce. Nigeria boasts a diverse range of agricultural products, with different states specialising in various crops. The nation’s food belt spans across states such as Benue, Niger, Kaduna, and Kebbi, known for their production of rice, maize, yam, and other staples.

However, the effectiveness of transporting these goods to markets across the country and beyond, depends largely on the availability and efficiency of transportation infrastructure, including railways. While the railway network covers major routes such as the Western and Eastern lines, there remain gaps in connectivity, hindering seamless transportation of goods from agricultural hubs to urban centers and ports.

The nation’s rail sector is now poised to play its role as more rail gauges are completed. In January 2024, Nigeria announced the completion of the Port-Harcourt-Aba rail track.

“So excited to have read the news that the rail track installation from Port Harcourt to Aba on the Nigeria Eastern Narrow-Gauge Railway (Port Harcourt—Maiduguri narrow gauge railway) project has been completed by CCECC.

“In March 2021, former President Muhammadu Buhari flagged off the commencement of this crucial and major infrastructure development that includes new branch lines, the Bonny Deep Sea Port, and a Railway Industrial Park in Port Harcourt, Rivers State,” Bashir Ahmad, Digital Communications Assistant to Muhammadu Buhari, former President of the Federal Republic of Nigeria, said on his X handle.