• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Economy

Nigerian rail sector revenue grows by 81.2% in Q4 2022

CSL Stockbrokers by CSL Stockbrokers
May 8, 2023
in Economy, Macros
Nigerian rail sector revenue grows by 81.2% in Q4 2022
Share on FacebookShare on TwitterShare on Linkedin

Article summary

  • Total revenue from rail transportation grew by 81.2% q/q to N1.69 billion in Q4 2022, driven by a rise in passenger traffic and revenue from other sources.
  • The y/y revenue declined by 16%, which can be attributed to lost revenue from the long suspension of rail operations along the Abuja-Kaduna route.
  • The sector’s contribution to the transportation sector’s real GDP was less than 1% (0.03%) in Q4 2022, and the high level of insecurity in the country is becoming a major bottleneck to patronage despite the current administration’s efforts to integrate rail transport into the Nigerian transportation system.

Based on recent data from the National Bureau of Statistics on rail transportation, the total revenue generated from the subsector grew by 81.2% q/q to c. N1.69 billion in Q4 2022. This compares favorably with an increase of 27.3% q/q in the previous quarter. On a y/y basis, the total revenue declined by 16%. Specifically, the total subsector’s revenue is made up of income from passenger fees, freight, and other sources.

Revenue growth and sources

The robust q/q growth in total revenue was driven by a rise in passenger traffic, which more than doubled to 1.34 million in Q4 2022 from 500,000 in Q3 2022. According to the data, passenger revenue increased +61.4% q/q to N1.15bn in Q4 2022 (accounting for 68% of gross revenues during the quarter but declining 39.5% y/y to N1.15bn). Revenue receipts from other income increased significantly by 224% q/q to c. N382m, while revenue from cargo transportation amounted to over NGN157m, representing an increase of 64% y/y.

Factors affecting revenue

Based on news reports, the resumption of operations on the Abuja-Kaduna railway line in December 2022 partly contributed to the q/q rise in total revenue. Conversely, the y/y decrease in revenue can be attributed to lost revenue from the long suspension of rail operations along the Abuja-Kaduna route. We recall that the federal government suspended Abuja-Kaduna rail line operations in March 2022 due to security concerns. Q4 2022 GDP numbers showed that the rail sector grew by 3.8% y/y, an improvement over the consecutive contractions of -29.9% y/y and -37.9% y/y recorded in the previous two quarters. In terms of contribution, rail transport accounted for less than 1% (0.03%) of the transportation sector’s real GDP in Q4 2022.

RelatedStories

Nigeria's Coastal Rail Project

Transportation receives fresh boost as FG okays $2.3 billion coastal rail project

May 24, 2019
NBS

Nigeria earned N1.16 billion from rail in six months

October 30, 2018

Future outlook and challenges

Looking ahead, we anticipate an improved revenue outturn in 2023, as the federal government has implemented various security measures to address the security challenges faced by the sub-sector. Railways are a climate-smart and efficient way to move people and freight and promote economic growth while cutting greenhouse gas emissions. They are a clean and compact way to move millions of passengers and millions of tons of goods across countries. That said, the high level of insecurity in the country is fast becoming a major bottleneck to patronage despite the current administration’s efforts to integrate rail transport into the Nigerian transportation system. Recent attacks on the Abuja Kaduna rail line have left a lasting fear in the minds of many Nigerians.


Follow us for Breaking News and Market Intelligence.
Tags: Rail Transportation
CSL Stockbrokers

CSL Stockbrokers

Related Posts

Nigeria's Coastal Rail Project
Business News

Transportation receives fresh boost as FG okays $2.3 billion coastal rail project

May 24, 2019
NBS
Business News

Nigeria earned N1.16 billion from rail in six months

October 30, 2018
Next Post
FMDQ, Cardinal Stone

FMDQ Exchange admits Greenwich Merchant Bank’s N12.20 billion Commercial Papers 

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  • BBNaija season 10 to launch July 26 with N150 million grand prize 
  • NIPC and Nairametrics partner to track and publish investment inflow into Nigeria 
  • Alleged N6.9bn Fraud: EFCC to appeal Ex-Ekiti Governor Fayose’s acquittal in 6-year-old case 

Follow us on social media:

Recent News

How BBNaija can help non-entertainers achieve unique business goals

BBNaija season 10 to launch July 26 with N150 million grand prize 

July 16, 2025
NIPC and Nairametrics partner to track and publish investment inflow into Nigeria 

NIPC and Nairametrics partner to track and publish investment inflow into Nigeria 

July 16, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics