More Nigerians are beginning to embrace the rail transportation system as revenue rose to ₦1.69 billion in the second quarter of 2024, reflecting a 53.14 per cent increase compared to the ₦1.10 billion recorded in the same period of 2023.
Despite very poor services and noticeable sharp practices by staff, a total of 689,263 passengers travelled by rail in Q2, representing a growth rate of 45.38 per cent compared to 474,117 passengers in the corresponding quarter of 2023.
This data was disclosed by the National Bureau of Statistics, NBS, in its report released on Thursday, which reveals that in 2023, the Nigerian Railway Corporation, NRC, debatably generated ₦1.07bn, as revenue from passengers.
According to the report, the volume of goods transported via rail also saw a significant increase, with 143,759 tons moved in Q2 2024, up from 56,936 tons in Q2 2023.
Additionally, NRC reported a volume of 5,940 tons of goods transported through pipelines in Q2 2024, an increase from the 2,856 tons recorded in the same period of the previous year.
Revenue from goods conveyed via rail stood at ₦537.36m in Q2 2024, a remarkable increase of 206.68 per cent compared to ₦175.22m in Q2 2023. The movement of goods through pipelines also contributed to revenue generation, with ₦42.08m collected in Q2 2024, compared to ₦12.81m in Q2 2023.
Other revenue receipts amounted to ₦994.68m in Q2 2024, representing a staggering increase of 5,206.68 per cent from the ₦18.74m recorded in the corresponding period of last year.
In the first quarter of 2024, Nigeria spent 2,470 per cent more on railway debt servicing than it made from rail service revenue.
The Nigerian Railway Corporation recorded record revenues of ₦2.12bn in the first half of 2021, an increase of 31 per cent over the same period in 2019, which recorded the previous record revenue.
At the same time, revenue from freight transport was down, with gains coming mainly from passenger transport between Lagos and Ibadan on the new standard gauge.
Sadly, management of NRC are not taking the inherent advantages, as services are far below expectations, with overcrowded coaches that breaks down at will, with air-conditions barely serving its purpose and conveniences converted for luggage.
Research reveals that NRC will surpass the reported income if they increase their schedules, with a morning ride from Itakpe to Warri, instead of the one-way arrangement that sees passengers waiting endlessly for the train to arrive from Warri at about 2 to 3pm in most cases.
The train departs an hour later and arrive at night without adequate security and lights at its various terminus, thereby leaving them at the mercy of shylock transporters and criminal that exploit them with high cost of transportation.
Another challenge is the very bad roads from their various stations to towns where they are located.
