In the third quarter of 2023, the Nigeria Railway Corporation (NRC) collected around N1.895 billion in revenue from passenger and cargo transports.
This represents an increase of 103.1% increase from N933 million recorded in the corresponding quarter of 2022.
This is according to the latest NBS Rail transport data for July, August and September 2023.
According to the report, the NRC generated N1.49 billion from passengers during the period and recorded N286.78 million from cargo/goods.
Furthermore, there were additional receipts totalling N119.22 million, reflecting a 1.05% increase in Q3 2023 compared to the N117.98 million collected in Q3 2022.
When compared on a quarter-on-quarter basis, revenues from rail transport increased by 57.13% from N1.206 billion generated in the second quarter of 2023 to N1.89 billion for the third quarter.
A breakdown of the figures reveals that revenues from passenger transport rose from N1.10 billion to N1.48 billion.
Also, receipts from cargo/goods transport for the second quarter increased from N188 million to N286 million from the second quarter to the third quarter.
Passenger and volume of goods moved by rail
Furthermore, for the period under review, the rail system witnessed a total of 594,348 passengers travelling, marking a notable increase from the 500,348 passengers reported during the same quarter in 2022, representing a growth rate of 18.79%.
When compared to the previous quarter, passengers moved by the rail system increased from 474,117 to 594,348 people.
Additionally, the volume of goods and cargo transported in Q3 2023 amounted to 81,963 tons, a significant rise from the 33,312 tons transported in Q3 2022. When compared to the previous quarter, the volume of cargo increased from 56,029 tons to its current figure.
Rail lines in Nigeria
Nigeria has several active rail lines which it hopes to increase with the rail projects across the country. In 2020, the federal government commissioned the rail line from Ujevwu in Delta State to Itakpe in Kogi State.
Other active rail lines include; Lagos to Ibadan, Abuja-Kaduna, and Iddo to Ijoko. The Lagos state government commissioned the first metro rail line in Nigeria last year which ferries passengers from Mile 2 to Marina.
It will be nice if the total overhead cost associated with the revenues generated is also indicated. This will show if the entire operations is profitable or a net loss. This will also give an indication if the loans obtained for rail operations is justifiable