The Nigerian Railway Corporation (NRC) has generated over N1.14 billion in revenue from goods transported via rail in the first half (H1) of 2024.
According to data from the National Bureau of Statistics (NBS), this represents a 221% increase
compared to the N356.5 million earned during the same period in 2023.
The sharp increase in revenue is a direct result of significant growth in the volume of goods transported
and demonstrates the growing importance of rail in Nigeria’s logistics network.
Growth in Goods and Pipeline Transportation
The volume of goods transported by rail surged from 116,902 tons in H1 2023 to 304,409 tons in H1 2024, more than doubling the previous year’s figure.This surge in transported cargo resulted in a corresponding increase in revenue, with N1.14 billion generated in H1 2024, compared to N356.5 million in H1 2023.
In addition to its rail cargo services, the NRC also saw significant growth in its pipeline transportation.
The volume of goods transported via pipelines rose from 2,856 tons in H1 2023 to 13,940 tons in H1 2024.
This increase in pipeline volume translated into a rise in revenue, with N101.2 million earned in H1 2024, a substantial jump from the N12.8 million generated in the same period in 2023.
Passenger Services and Other Income
In addition to its cargo revenue, the NRC’s passenger services also experienced significant growth. The number of passengers transported increased from 915,842 in H1 2023 to 1.36 million in H1 2024.
This increase led to passenger revenue reaching N3.11 billion in H1 2024, up from N1.87 billion in H1 2023, highlighting the growing reliance on the rail system for public transportation.
Moreover, other income receipts for the NRC saw a dramatic rise, reaching N1.02 billion in H1 2024 compared to N52.9 million in H1 2023.
What you should know
The NRC’s significant revenue growth in the first half of 2024 comes at a time when many
businesses are seeking alternatives to road transportation, which has been plagued by rising costs and frequent delays.
As fuel prices continue to soar and the nation’s road infrastructure struggles with congestion,
roadblocks and poor maintenance, the cost of moving goods by road has become increasingly prohibitive.
This situation has driven more Nigerians, especially those in the logistics, agricultural and
manufacturing sectors, to turn to rail as a more cost-effective and reliable means of transporting bulk cargo.
Earlier in June, the Minister of Transportation, Said Alkali, said that the resumption of cargo train services on the Lagos-Kano route would force down the prices of food items and prolong the lifespan of the highways.
He added that the benefits of the restored freight services include a reduction in the cost of transportation and the cost of doing business.
The NRC recently took delivery of 17 locomotive-driven wagons for cargo operations on the national rail networks.
This was in continuation and consolidation of freight services launched by the Federal Ministry of Transportation in June this year. NRC Managing Director, Fidet Okhiria, described this move as part of efforts at realizing the federal government’s objective of promoting the ease of doing business.
