The National Bureau of Statistics (NBS) has reported an 8.8 percent year-on-year increase in revenue for rail transport in Nigeria, reaching N6.05 billion in 2023, up from N5.56 billion in 2022. This was disclosed in the NBS Rail Transport report for the fourth quarter of 2023 (Q4’23) released yesterday.
The report indicated that the revenue generated in 2023 was comprised of N4.42 billion from passengers, N1.07 billion from goods and cargos, and N565.84 million from other income receipts. Despite the overall increase in revenue, the number of passengers utilizing rail transport experienced a significant decline.
In Q4’23, the number of passengers fell by 49.7 percent to 672,198 compared to the corresponding quarter of 2022, which saw 1,337,108 passengers. However, the volume of goods and cargos transported by rail during Q4’23 stood at 119,286 tons, a notable increase from the 53,136 tons recorded in Q4’22.
The decline in passenger numbers was reflected in revenue, with N1.07 billion received from passengers during Q4’23, representing a 7.51 percent decrease from the N1.15 billion recorded in the same quarter of the previous year. Conversely, revenue from goods and cargos conveyed in Q4’23 saw a significant uptick, reaching N423.22 million, up by 169.16 percent from N157.23 million received in Q4’22.
The NBS highlighted the importance of these figures in understanding the dynamics of rail transport in Nigeria, indicating both challenges and opportunities for the sector. Despite the decrease in passenger numbers, the substantial increase in revenue from goods and cargos underscores the potential for growth and development in freight transport via rail.
The report provides valuable insights for policymakers and stakeholders in the transportation sector, emphasizing the need for targeted interventions to enhance passenger experience and stimulate demand for rail travel. Additionally, it highlights the significance of investing in infrastructure and improving operational efficiency to maximize the economic potential of Nigeria’s rail transport network.
