The Nigerian Railway Corporation (NRC) has reported a 53.14% increase in revenue from passenger transport in the second quarter of 2024.
This is according to the latest figures released by the National Bureau of Statistics (NBS).
The total revenue generated from passengers during this period stood at N1.69 billion, up from N1.10 billion in the corresponding quarter of 2023.
According to the NBS report, “In terms of revenue generation, N1.69 billion was received from passengers during the reference period, showing an increase of 53.14% from the N1.10 billion recorded in the same quarter of the previous year.”
Increase in Cargo Revenues
In addition to passenger transport, the NRC also recorded a substantial rise in revenue from goods and cargo transport.
Earnings from the movement of goods via rail surged by 206.68%, climbing from N175.22 million in Q2 2023 to N537.36 million in Q2 2024.
This sharp increase in revenue reflects the growing reliance on rail infrastructure for cargo transportation, a sector that continues to grow as businesses and industries seek more efficient methods of moving goods across the country.
Meanwhile, the revenue generated from pipeline transportation also saw a notable boost, with earnings rising to N42.08 million in Q2 2024, compared to N12.81 million during the same period last year.
The report read: “Similarly, N537.36 million was collected from goods/cargo conveyed via rail in Q2 2024, up by 206.68% from N175.22 million received in Q2 2023. In addition, revenue generated from the movement of goods/cargo via pipeline stood at N42.08 million in Q2 2024, higher than the N12.81 million reported in the corresponding period of last year.”
Passenger and Cargo Growth
The significant revenue growth is closely linked to the increased use of the railway system by both passengers and cargo shippers.
The number of passengers transported via rail rose by 45.38% in Q2 2024, reaching 689,263, compared to 474,117 passengers in Q2 2023.
On the cargo front, the volume of goods transported surged to 143,759 tons, a massive jump from the 56,936 tons moved in the corresponding quarter of the previous year.
According to the NBS report, “In Q2 2024, a total of 689,263 passengers travelled via rail system relative to 474,117 reported 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.”
Other Income Sources
- The NRC also reported a striking increase in other income receipts, which jumped by over 5,000%, from N18.74 million in Q2 2023 to N994.68 million in Q2 2024.
- This impressive leap highlights the corporation’s focus on maximizing its revenue streams and improving operational efficiency.
- Overall, the significant growth in both revenue and service utilization in Q2 2024 points to the vital role that the rail sector is increasingly playing in Nigeria’s transportation ecosystem.
