The revenue generated by Nigeria’s railway sector reached ₦1.69 billion in the second quarter of 2024, a substantial 53.14% increase from ₦1.10 billion in the same quarter last year, according to the National Bureau of Statistics (NBS).
The Nigerian Railway Corporation (NRC) reported that 689,263 passengers utilized rail services during Q2 2024, marking a 45.38% rise from 474,117 passengers in Q2 2023.
Freight transport also saw significant growth, with 143,759 tons of goods transported by rail, a notable increase from 56,936 tons in the same period last year. Additionally, the NRC moved 5,940 tons of goods via pipelines, up from 2,856 tons in Q2 2023.
Revenue from rail freight soared to ₦537.36 million, reflecting a remarkable 206.68% increase compared to ₦175.22 million in Q2 2023. Pipeline transport revenue also grew to ₦42.08 million, up from ₦12.81 million the previous year. Other revenue streams contributed ₦994.68 million, showing an extraordinary increase of 5,206.68% from ₦18.74 million in Q2 2023.
Despite these gains, the first quarter of 2024 saw Nigeria incurring significant costs, with railway debt servicing surpassing earnings from services by 2,470%. Nonetheless, the NRC previously recorded a high of ₦2.12 billion in revenue for the first half of 2021, primarily driven by passenger services, especially on the Lagos-Ibadan standard gauge line.
This surge in revenue highlights the increasing reliance on Nigeria’s rail system for both passenger and freight transportation, alongside the expanding role of pipelines in the country’s logistics infrastructure.
