The Nigerian Railway Corporation ,NRC, generated over N6 billion from train operations in 2023, according to the Rail Transportation Data published by the National Bureau of Statistics, NBS.
Despite a 32.08% decline in passenger traffic, with 2,182,388 passengers recorded compared to 3,212,948 in the previous year, the NRC’s revenue remained significant.
The specifics from the NBS report indicate that in the fourth quarter of 2023, the NRC transported 672,198 passengers, reflecting a negative growth of -49.73% compared to the same period in 2022 when 1,337,108 passengers traveled by rail.
In terms of revenue, the NRC generated N4,426,495,760 from passenger transportation in 2023, down slightly from N4,546,342,056 in 2022. Additionally, the NRC earned N1.079 billion from cargo business in 2023, compared to N441.7 million in 2022. Other revenue receipts stood at N565,843,550 in 2023, down from N607,800,662 in 2022.
For the first quarter of 2023, the NRC transported 441,725 passengers, a significant decrease from 953,099 passengers in the same quarter of 2022. Despite the decline in passenger traffic, the NRC’s revenue from operations remained substantial, reflecting the importance of rail transportation in Nigeria’s economy.
Giving a quarterly breakdown of the ridership, the NBS said in Q1 2023, the Nigeria Railway Corporation transported 441,725 passengers, compared to 953,099 passengers in the corresponding quarter of 2022.
Ridership in Q2 2023, however, improved marginally to 474,117, from 422,393 recorded in the corresponding quarter of the previous year. Similarly, ridership in Q3 2023 was 594,348, surpassing the 500,348 recorded in Q3 2022.
The decline in ridership last year resulted in a 2.64% decrease in revenue for the Nigerian Railway Corporation, NRC, affecting both passenger and cargo traffic. However, there was a notable improvement in cargo movement in 2023, with the NRC transporting 317,244 tons compared to 157,024 metric tons in 2022.
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The total revenue generated by the Corporation in 2023 is yet to be specified. However, comparing revenue across the four quarters of 2023 and 2022 reveals fluctuations. In Q1 2023, the NRC received N768,438,658, down from N2,077,836,686 in Q1 2022. Q2 2023 saw an increase to N1,100,941,295 from N598,736,300 in Q2 2022. Q3 2023 also experienced growth, with revenue reaching N1,489,200,328 compared to N715,091,714 in Q3 2022. However, in Q4 2023, revenue decreased to N1,067,915,479 from N1,154,677,356 in Q4 2022.
It’s worth noting that the Federal Government’s Special Intervention Initiative, SII, which allowed free train rides across standard gauge lines and other networks, was announced during this period.
The free train ride was recorded on the Lagos-Ibadan Train, LIT, Abuja-Kaduna, AKT, Itakpe-Warri Train, IWT, with riders only required to obtain the free ticket online, as it shuts down its ticketing centres across the country.
The NRC Management had disclosed that the Federal Government only mobilized the Corporation with adequate logistics to cover the 15 days operation that the free ride was observed from December 21, 2023 to January 4, 2024, and further extended by three days, eventually coming to an end on January 7, 2024.
An official of the NRC who spoke with reporters attributed the drop in its passenger revenue to the reduction of its trips, repairs of some portion of the tracks, reduced speed and fear of attack by bandits, insisting that the drop in revenue was unconnected with the cost of diesel and ticket prices.
The drop in revenue had nothing to do with ticket prices, stating that the Corporation has not reviewed its price since 2022, as stated by the official who didn’t want to be named
Some of the factors responsible for the drop in revenue are; the reduction in the number of trips, reduced speed due to some bad portions of the rail tracks and fear of another attack by bandits.
The drop in revenue for the NRC can be attributed to various factors, including security concerns and changes in operational logistics. The train service faced significant challenges after a bandit attack in March 2022, leading to the suspension of operations for several months. Subsequent security alerts, such as the plot to attack the Abuja — Kaduna Train Service, further exacerbated fears among prospective passengers and contributed to a decline in revenue.
Additionally, changes in the speed and frequency of train trips impacted passenger convenience and satisfaction. Reductions in train speed due to track conditions and safety concerns extended travel times, making it less appealing for passengers with time-sensitive appointments. The decrease in the number of daily trips, from six to four, also affected passenger accessibility and contributed to the revenue decline.
Addressing these challenges, particularly security threats and operational efficiency, will be crucial for the NRC to regain passenger confidence and improve revenue generation.
Crediblenews.ng
