Revenue generated from rail transport in Nigeria fell by 4.7% year-on-year (YoY) in the third quarter of 2024 (Q3’24), totaling N2.19 billion, down from N2.3 billion in Q3 2023. This decline comes despite notable growth in the number of passengers and volume of goods transported by rail.
The National Bureau of Statistics (NBS) released the data on Thursday, breaking down the revenue sources. Of the total, N1.7 billion came from passenger services, while N412.57 million was earned from goods/cargo transportation. Additionally, N51.85 million was generated from the movement of goods through pipelines, and N34.77 million was recorded under “Other Receipts.”
In terms of passenger traffic, the rail system saw a significant increase, with 743,205 passengers transported during Q3 2024. This marks a 25.05% rise compared to 594,348 passengers in the same period of 2023.
Despite the increase in passenger numbers, revenue from passenger services grew by only 13.83% from N1.49 billion in Q3 2023. This growth was not enough to offset the overall decline in total rail transport revenue for the quarter.
The volume of goods transported by rail also saw an uptick, reaching 96,401 tons in Q3 2024, up from 69,003 tons in Q3 2023. However, the Nigerian Railway Corporation (NRC) reported a decrease in goods transported via pipelines, with 7,320 tons moved in Q3 2024, compared to 12,960 tons in the same quarter of the previous year.
Despite the growth in passenger traffic and rail freight, the overall decline in revenue highlights the challenges faced by the rail transport sector in generating consistent income.
