key points
- Rail passenger traffic increased by 25.05% in Q3 2024 compared with the same period in 2023.
- Revenue from rail cargo rose sharply by 89.6%, reflecting improved freight activity.
- Pipeline cargo volume and other receipts recorded declines during the period.
Main story
Nigeria’s rail transport system recorded a significant increase in passenger movement and cargo revenue in the third quarter of 2024, reflecting growing utilisation of rail services across the country.
Data released for the period showed that 743,205 passengers travelled through the rail network during the quarter, compared with 594,348 passengers recorded in the corresponding period of 2023. The development represents a growth rate of 25.05 per cent in passenger traffic.
The volume of goods transported through rail services also rose during the review period. A total of 96,401 tonnes of cargo were moved in Q3 2024, an increase from the 69,003 tonnes recorded in the same quarter of the previous year.
However, the Nigerian Railway Corporation recorded a decline in the movement of goods through pipelines. Cargo transported through this channel stood at 7,320 tonnes during the quarter, lower than the 12,960 tonnes recorded in Q3 2023.
Revenue generated from passenger transport reached N1.70 billion in the third quarter of 2024, representing an increase of 13.83 per cent compared with the N1.49 billion generated in the corresponding period of 2023.
Similarly, revenue from cargo transported via rail increased significantly to N412.57 million, rising by 89.60 per cent from the N217.60 million reported in the same quarter of the previous year.
Meanwhile, revenue generated from goods transported through pipelines declined to N51.85 million in Q3 2024, compared with N69.18 million recorded in the same period of 2023. Other receipts also dropped significantly to N34.77 million, reflecting a 70.84 per cent decrease from the N119.22 million generated in the corresponding quarter of the previous year.
The issues
The steady increase in rail passenger traffic highlights growing public reliance on rail transport as an alternative to road travel amid rising transportation costs and safety concerns.
The sharp rise in rail cargo revenue also indicates improving commercial use of rail infrastructure for freight movement.
However, the decline in pipeline cargo movement and other operational receipts raises concerns about inefficiencies or reduced activity in certain segments of the transport system.
What’s next
Industry stakeholders expect the Federal Government and the Nigerian Railway Corporation to continue expanding rail infrastructure and modernising operational systems to support growing passenger demand and freight movement.
Further improvements in cargo logistics and intermodal transport integration are also anticipated to strengthen rail’s role in Nigeria’s transport and economic development framework.
Bottom Line
The rise in passenger traffic and cargo revenue in Q3 2024 signals increasing utilisation of Nigeria’s rail system, though declines in pipeline cargo movement and other receipts highlight areas that require further operational improvements.
