In Q3 2024, Nigeria’s rail revenue rose 21% to ₦2.20 billion, driven by road insecurity.
Passenger earnings increased by 13.83% to ₦1.70 billion, with a 25% rise in passengers.
Rail freight surged by 89.6% to ₦412.57 million. However, pipeline and miscellaneous revenues fell.
In Q3 2024, Nigeria’s railway system recorded a significant boost in revenue, reaching ₦2.20 billion, a 21% increase from ₦1.82 billion in the same period of 2023.
This growth was driven by rising road insecurity and a surge in passenger and cargo transport.
The National Bureau of Statistics (NBS) reported that passenger transport generated the most revenue, bringing in ₦1.70 billion, up 13.83% from ₦1.49 billion in Q3 2023.
The number of passengers also rose by 25.05%, with 743,205 people choosing rail travel, compared to 594,348 the previous year.
Read Also: AfDB’s $2.2bn To Support Nigeria’s Agricultural Development Through SAPZ Phase II
Road insecurity likely influenced many to switch to rail for safer travel.
Cargo transport also saw impressive growth.
Rail revenue from goods jumped by 89.60%, from ₦217.60 million to ₦412.57 million.
The volume of goods moved increased to 96,401 tons, up from 69,003 tons in the same quarter of 2023, indicating businesses’ growing reliance on rail for transportation.
However, revenue from pipeline-conveyed goods dropped to ₦51.85 million, down from ₦69.18 million, while other miscellaneous earnings fell sharply by 70.84%, generating only ₦34.77 million.
Despite these declines, the railway system’s overall performance in Q3 2024 highlights its rising role, with more Nigerians turning to rail for both travel and cargo as road insecurity continues to rise.
