Reappointed managing director of Nigerian Railway Corporation (NRC) Fidets Okhiria has declared that the corporation’s internally generated stands at N1.4billion or 31.8 percent as at September 30, 2020 as against the initial N4.4billion (68.2 percent) projection for the year, with N245million remitted to the Treasury Single Account, TSA as at October 31 this year.
At the last 2021 budget defence to the joint committee of land and marine transport at the National Assembly in Abuja. Okhiria said that, the Covid19 pandemic affected its operations because train services were stopped which affected the IGR projection for the year 2020.
According to the Fidet Okhiria, “The Joint Committee is invited to also note that for the year 2020, NRC presented a separate internally generated revenue & expenditure budget. The sum of N1,429, 350,895 has been generated as at September 30, 2020 against the projection of N4,449,671,841 from our core activities, representing 32 percent performance’’.
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The NRC boss disclosed that, it is necessary to mention that our train services were stopped and significantly reduced upon resumption due to the impact of Covid-19 pandemic, coupled with the construction work within the Lagos corridor including access to Apapa port also impacted on our ability to provide train services.
“It is important to mention that during the period under review, the corporation started making payments from its internally generated revenue, IGR, into the federal government dedicated TSA as directed by the federal executive council. A total sum of N245, 460,000 has so far been lodged into the account as at October 31, 2020.
Also, the Railway Property Management Company Limited; a wholly owned subsidiary company of NRC as at October 31, 2020 generated N1,372,559,861,98 representing 91.5 percent of N1,500,000.000 which was the revised approved revenue target for 2020.
For the year 2021, NRC plans to generate a total of N5, 356,571,418 as IGR. More coaches are expected to be deployed to Abuja-Kaduna train service, full commercial operation has commenced between Warri-Itakpe while the Lagos-Ibadan train service is expected to commence soon.
The operational expenditure remains very high because most of the stations along Abuja-Kaduna railway line are substantially powered by diesel generators. Efforts are, however, being made to ensure that alternative sources through Independent Power Plant (IPP) is explored to service all routes beginning with the standard gauge lines.
He said that the initial revenue target of N2 billion was reviewed downwards due to the impact of the COVID-19 pandemic.
In 2021, NRC targets to generate N2billion while the total proposed capital budget is N23,849,000,000 distributed into 17 budget lines. In the year 2021 Budget (capital and recurrent) for year 2020 budget, N18, 014,832,799 was appropriated for capital budget.
This amount was subsequently revised downwards to N16, 036,382,345 due to the economic downturn as a result of the pandemic which led to shut down of economic activities as well as the dwindling revenue from crude oil.
“As at today, N15, 032,344,110.86 or 94 percent of 2020 capital appropriation has been released with rocurement process is on-going, even as N7, 099,773,934 was appropriated for year 2020 as total personnel cost. As at the end of September, 2020, N6, 472,633,302.08 has been paid leaving a balance of N627, 140,631.92.
