Rail revenue dips 21% YoY despite increase in freight income
By Jeph Ajobaju, Chief Copy Editor
Revenue from rail transportation dropped 39 per cent year-on-year (YoY) from N5.6 billion in 2021 to N4.5 billion in 2022, partly blamed on the suspension of services in parts of the country because of security challenges.
A security breach at Ajaokuta train station in February 2022 forced the Nigerian Railway Corporation (NRC) to suspend the Lagos-Ibadan-Ajaokuta train services.
The NRC in March 2022 also suspended operations due to an attack on the Abuja-Kaduna train which saw the kidnap of more than 160 passengers and the death of eight of them.
However, National Bureau of Statistics (NBS) Rail Transport report for the third quarter of 2022 (Q3 2022) and fourth quarter (Q4 2022) shows the number of rail passengers rose 30 per cent YoY from 2.7 million in 2021 to 3.2 million in 2022, per Vanguard.
The NBS also said revenue from goods/cargo jumped 39 per cent from N299.8 million in 2021 to N416.8 million in 2022. But the volume of goods\cargo decreased from 142.4 million tonnes in 2021 to 118.5 million tonnes in 2022.
Other income receipts from rail transport amounted to N607.8 million in 2022, up 1,482 per cent on N38.4 million in 2021.
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Rail transport generates N2.93tr revenue despite drop in passengers
Rail revenue had risen 42 per cent year-on-year (YoY) from N2.07 trillion in the first six months of 2021 to June (6M 2021).to N2.93 trillion in 6M 2022.
NBS data on Rail Transportation for the second quarter of 2022 (Q2 2022) shows the N2.93 trillion comprises passenger revenue at N2.7 trillion, goods (N157.76 million), and other incomes (N107.64 million).
However, revenue generated from passengers fell 44.7 per cent YoY, caused by a 25.3 per cent decline in passengers from 565,385 in Q2 2021 to 422,393 in Q2 2022.
“The rail transportation statistics in Q1’22 revealed that 953,099 passengers travelled via train relative to 424,460 reported in the corresponding quarter of 2021, representing a growth rate of 124.54 percent,” the NBS explained.
“In addition, 32,139 tons of goods were transported in the first quarter of 2022, compared to 9,071 tons reported in Q1’21, showing a growth rate of 254.3 percent.
“In terms of revenue generation, N2.07 billion was received from passengers over the period, higher by 132.82 percent relative to N892.46 million in Q1’21.
“Similarly, N71.76 million was collected in Q1’22 as revenue from goods/cargos, compared to N18.89 million in Q1’21.”
Other receipts
“Other receipts grew by 619.34 percent in the Q1’22, recorded at N57.92 million from N8.05 million in Q1’21,” the NBS added.
“In Q2’22, passengers declined by 25.29 percent, reported at 422,393 relative to passengers in Q2’21 which stood at 565,385.
“Revenue generated from passengers was N598.73 million, a decrease of 44.76 percent from N1.08 billion in the same period last year”
“Moreso, revenue generated from goods in Q2’22 amounted to N86 million, higher by 14.34 percent compared to N75.21 million reported in the Q2’21.
“Other income receipts stood at N49.72 million, an increase of 988.92 percent from the N4.56 million recorded in the same period of the preceding year.”