Rail generates N11.6b revenue in 2 years
By Jeph Ajobaju, Chief Copy Editor
Rail transport generated N11.61 billion revenue in the past two years during which period Abuja spent $247.98 million (N111.23 billion at the official exchange rate of N448.55 in December 2022) to service railway debts.
Debt Management Office (DMO) data shows the treasury in 2021 spent $122.92 million servicing debts incurred for the Nigeria Railway Modernisation Project (Idu-Kaduna Section), the Nigeria Railway Modernisation Project (Lagos-Ibadan Section), and the Nigeria Abuja Light Rail Project.
It spent in 2022 $125.06 million to service debts incurred for the Nigeria Railway Modernisation Project (Idu-Kaduna Section), Nigeria Railway Modernisation Project (Lagos-Ibadan Section), Nigeria Abuja Light Rail Project, and Nigerian supply of rolling stocks and depot equipment for the Abuja light rail project.
Despite the N111.23 billion spent on debt servicing, the rail generated only N11.61 billion, according to the latest figures released by the National Bureau of Statistics (NBS).
In 2021, railway fetched N6.04 billion from passengers, goods, and other income receipts. But revenue from these sources dropped to N5.57 billion in 2022.
Passenger traffic reached 2.72 million and goods 142,438 tonnes in 2021. In 2022, passengers rose to 3.21 million but goods slid to 118,587 tonnes.
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Insecurity, mismanagement
Insecurity and mismanagement hamper the growth of rail service, per The PUNCH.
An Abuja-Kaduna train was attacked by terrorists in March 2022 and kidnappers hit another train in Edo in January 2023.
Rail derailment is rising, further discouraging passengers from relying on rail transport.
After the attack on the Abuja-Kaduna train in 2022, Nigeria Railway Corporation (NRC) Managing Director Fidet Okhiria disclosed about N113 million was lost because of the non-operation of trains on the route.
“The last time we checked that was between the months of February to August. We have lost about N113 million,” Okhiria said.
However, investigation by The PUNCH revealed about N5.37 billion was lost due to the suspension of services on the Abuja-Kaduna rail.
Meanwhile, the Warri-Itakpe Train Service will resume operations on 24 April 2023, according to Station Manager Helma Sani.
“We are resuming operation on Monday 24/4/2023,” he confirmed.
In January this year, 148 passengers and 38 crew members of a train plying the Warri-Itakpe route escaped death when the train derailed in Kogi forest and got passengers stranded.
Many abandoned the train for fear of being kidnapped. The train left Warri early and got derailed at around noon in the forest between Ajaokuta and Itakpe.
After the incident, Warri Itakpe Train Service Coordinator Sanni Abdulganiyu suspended rail operations in the corridor.
