A growing number of Nigerians are opting for rail transportation, as revenue surged to ₦1.69 billion in the second quarter of 2024—a 53.14% increase from the ₦1.10 billion recorded in the same period of 2023.
This information was revealed by the National Bureau of Statistics in a report released on Thursday.
In 2023, the Nigerian Railway Corporation generated ₦1.07 billion in passenger revenue.
According to the report, 689,263 passengers traveled by rail in Q2 2024, marking a growth rate of 45.38% compared to 474,117 passengers in the same quarter of 2023.
The volume of goods transported by rail also witnessed a significant rise, with 143,759 tons moved in Q2 2024, compared to 56,936 tons in Q2 2023.
Additionally, the Nigerian Railway Corporation reported 5,940 tons of goods moved through pipelines in Q2 2024, up from 2,856 tons in the same period the previous year.
Revenue from goods transported via rail reached ₦537.36 million in Q2 2024, a 206.68% increase from ₦175.22 million in Q2 2023.
Pipeline transportation also contributed to revenue, generating ₦42.08 million in Q2 2024, compared to ₦12.81 million in Q2 2023.
Other revenue receipts amounted to ₦994.68m in Q2 2024, representing a staggering increase of 5,206.68 per cent from the ₦18.74m recorded in the corresponding period of last year.
In the first quarter of 2024, Nigeria’s expenditure on railway debt servicing surged by 2,470% compared to the revenue generated from rail services.
Despite this financial strain, the Nigerian Railway Corporation achieved record revenues of ₦2.12 billion in the first half of 2021, marking a 31% increase compared to the same period in 2019, which previously held the record for highest revenue.
However, while passenger transport—particularly on the Lagos-Ibadan standard gauge—drove much of this revenue growth, freight transport saw a decline in revenue during the same period.