More Nigerians are turning to rail transportation, with revenue reaching ₦1.69 billion in the second quarter of 2024 up 53.14% from ₦1.10 billion in the same period last year, according to a recent report from the National Bureau of Statistics.
The Nigerian Railway Corporation (NRC) reported that 689,263 passengers traveled by rail in Q2 2024, marking a 45.38% increase compared to 474,117 passengers in Q2 2023. This surge in ridership has contributed to a significant uptick in revenue from passenger transport, which totaled ₦1.07 billion in 2023.
The volume of goods transported by rail also experienced remarkable growth, with 143,759 tons moved in Q2 2024, compared to 56,936 tons in the same quarter of 2023. Additionally, the NRC reported transporting 5,940 tons of goods through pipelines in Q2 2024, a rise from 2,856 tons in the previous year.
Freight revenue soared to ₦537.36 million in Q2 2024, a staggering increase of 206.68% from ₦175.22 million in Q2 2023. Revenue from pipeline goods transport also climbed, generating ₦42.08 million in Q2 2024, up from ₦12.81 million in the same period last year.
Other revenue receipts hit ₦994.68 million in Q2 2024, reflecting an extraordinary 5,206.68% increase from ₦18.74 million in the same quarter of 2023.
Despite these gains, the first quarter of 2024 saw Nigeria spending 2,470% more on railway debt servicing than it earned from rail service revenue. The NRC previously achieved record revenues of ₦2.12 billion in the first half of 2021, a 31% increase over the same period in 2019.
Most of the current revenue growth is attributed to passenger transport, particularly on the new standard gauge line between Lagos and Ibadan, even as freight transport revenue has faced declines.
