Insecurity on roads raises Nigeria’s rail revenue by 21% in three months

The Nigerian railway system recorded a boost in revenue generation during Q3 2024, with total earnings rising to N2.20 billion, according to the National Bureau of Statistics.

This is an increase of 21 percent when compared to the N1.82 billion reported in the corresponding period of 2023, driven by road insecurity and higher passenger turnout and increased cargo transportation.

The NBS, in its latest rail transportation data, reported that passenger transport contributed the highest revenue, generating N1.70 billion, up by 13.83 percent from the N1.49 billion in Q3 2023. This growth coincided with a 25.05 percent surge in the number of passengers, as 743,205 commuters opted for rail travel compared to 594,348 in the same quarter of the previous year.

Goods and cargo conveyed via rail brought in N412.57 million, a growth rate of 89.60 percent from the N217.60 million earned in Q3 2023. The volume of goods transported also increased, which stood at 96,401 tons during the quarter, up from 69,003 tons in the prior year.

Revenue from pipeline-conveyed goods fell to N51.85 million in Q3 2024, down from N69.18 million in the same period last year. Similarly, “other receipts,” which include miscellaneous earnings, dropped sharply by 70.84 percent, generating only N34.77 million compared to N119.22 million in Q3 2023.