Nigeria’s rail transport services have generated N3.26 billion revenue in the second quarter of 2024, representing an increase of 54.3 percent over N2.11 billion generated at the end of the first quarter of 2024, the latest rail transportation data from the National Bureau of Statistics (NBS) shows.
The revenue was generated from passengers, movements of goods or cargoes, from pipeline services, and other receipts.
Nigeria’s rail sector is undergoing significant reforms. In May, the Abuja Rail Mass Transit, covering a distance of 42.5 kilometres across 12 stations, resumed operations after a hiatus. The train services cover areas such as Abuja Metro, stadium, Kubwa, Wupa, Idu, airport, among others.
In Lagos State, the nation’s commercial capital, the coming on board of the blue rail services has boosted the movement of people across the state. And just recently, the state government tested the red line which is supposed to cover another axis of the state, thereby contributing to the growth of the state and the Nigerian economy as a whole.
In terms of passenger traffic, 689,263 passengers used the rail services in the second quarter of 2024, representing a 2.07 percent increase over 675,293 passengers that used the same system during the first quarter of this year. It also represented an increase of 45.38 percent on an annual basis when compared with 474,117 passengers that used the rail sector as of June 2023.
The data also showed that 143,759 tons of cargo were moved at the end of the second quarter, as against 160,650 tons at the end of the first quarter of the year. This amounted to a decline of 10.51 percent on a quarter on quarter basis but an increase of 152.49 percent when compared to 56,936 ton moved at the end of the second quarter of 2023.
A total of 5,940 tons of goods were moved via pipeline during the quarter, compared with 8,000 tons of goods at the end of the first quarter of 2024, and compared with 2,856 tons as of June 2023.
“In Q2 2024, a total of 689,263 passengers travelled via rail system relative to 474,117 report ed in the corresponding quarter of 2023, indicating a growth rate of 45.38%. The volume of goods/cargo transported via rail in Q2 2024 stood at 143,759 tons compared to 56,936 tons recorded in Q2 2023. In the quarter under review, the Nigerian Railway Corporation (NRC) reported an additional volume of goods/cargo transported via pipeline which stood at 5,940 tons, higher than 2,856 tons in Q2 2023,” NBS stated.
According to the data, N1.68 billion was generated as revenue from passenger traffic, N537.36 million as revenue from movements of goods, N42.08 million from pipeline transportation, as well as N994.68 million as revenue from other income sources.
At the end of the first quarter of this year, N1.42 billion was generated as revenue from passenger traffic, N607.31 million as revenue from cargo movements, N59.14 million as income from pipeline transportation, as well as N25.40 million as revenue from other sources.
“Railways may substantially reduce road casualties and their related costs. The cost of accidents is 50 times less for rail than road traffic, moreover the road traffic injury mortality rate is twice as high as the European average. It is estimated that by 2030 road traffic accidents in developing countries could be as high as AIDS deaths. Developing mass transit systems in urban areas could reduce such costs by mode transfer from road to rail,” AfDB stated.
