In the second quarter of 2022, Nigeria’s railway revenue declined by 71%

• Nigeria’s railway revenue declined by 71%
• The impact on revenue
• The cause of the decrease

In the second quarter of 2022, Nigerians used train transit less than they did in the first quarter of 2021, according to data from the National Bureau of Statistics (NBS).

According to the data, there were 422,393 passengers on trains in Q2 2022 compared to 953,099 in Q1 2022. In comparison to Q1 2022, when 32,139 tons of freight overall were moved via the railway system, the statistics also revealed that there were no shipments during Q2 2022.

The impact on revenue

The number of funds made from travelers in Q2 2022 was N598,736,300, whereas N2,077,836.686 was made in Q1 2022.

NBS reports that the revenue from goods in the second quarter of 2022 was N86,007,680 whereas the revenue in the first quarter of 2022 was N71,769,967.
The NBS statistics also revealed that other income receipts for the second quarter of 2022 were N49,728,630, compared to N57,922,411 in the first quarter of 2022.

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The cause of the decrease

According to a staff of the NRC, said that following the eight-death Kaduna train incident, the number of passengers dropped significantly. Many Nigerians have expressed sadness about the terrorist takeover of rail lines. The Abuja-Kaduna train system cost $500 million to build, which was financed by China.

Keep in mind that the Kaduna train kidnapping happened in the first quarter of 2022. Exactly at the end of the first quarter of the year, on March 28, the tragedy occurred. As shown by the data, increasing rail transit insecurity caused many Nigerians to choose other modes of transportation in the second quarter instead of trains.

Despite months spent in captivity, the final group of the abducted victims from the train attack were freed on October 5; nonetheless, the rail transportation sector is still plagued by the issue of security. All relevant authorities have been urged to take on the challenge, according to a recent statement from President Buhari.

Nigeria’s Minister of Transportation, Mu’azu Sambo, stated in August 2022 that the country was looking into PPP(public-private partnership) options to safeguard the train lines that went from Abuja to Kaduna and other portions of the northern region. According to the minister, adding security measures on the lines might cost as much as $21 million.

The Federal Executive Council (FEC) approved spending N718 million in August 2022 to strengthen security for the country’s 20 stations and 45 kilometers of rail track.

Source: Nairametrics