Nigerian Railway Corporation records N6 Billion revenue amid decline in passenger traffic

The Nigerian Railway Corporation (NRC) has reported revenue of over N6 billion from train operations in 2023, despite a notable decline in passenger traffic compared to the previous year.

According to a Rail Transportation Data published by the National Bureau of Statistics (NBS), the NRC recorded 2,182,388 passengers in 2023, marking a 32.08% decrease from the 3,212,948 passengers recorded in 2022.

Quarterly breakdowns revealed fluctuations in passenger numbers throughout the year. While Q2 2023 showed a marginal improvement in ridership compared to the corresponding quarter in 2022, with 474,117 passengers, Q1 and Q3 2023 experienced declines, with 441,725 and 594,348 passengers, respectively.

Despite the decline in passenger traffic, the NRC saw a significant increase in cargo movement, transporting 317,244 tons of cargo in 2023 compared to 157,024 metric tons in 2022.

The revenue generated by the NRC in 2023 totaled N6 billion, with specific quarterly earnings as follows: N768,438,658 in Q1, N1,100,941,295 in Q2, N1,489,200,328 in Q3, and N1,067,915,479 in Q4.

The drop in revenue was attributed to various factors, including reduced trips, track repairs, reduced speed, and security concerns following attacks by bandits. Additionally, the fear of potential attacks led to a decrease in passenger confidence and a subsequent decline in revenue.

An official from the NRC highlighted concerns about security alerts and reduced trip frequency affecting passenger confidence and revenue. However, the Corporation affirmed its commitment to safety and service excellence, despite ongoing challenges.

The NRC’s revenue figures underscore the importance of addressing security and infrastructure issues to enhance passenger confidence and sustain growth in Nigeria’s railway sector, the official stressed.