The Nigerian Railway Corporation (NRC) made over N1.14 billion from moving goods by train in the first half of 2024.
Data from the National Bureau of Statistics (NBS) shows this is a big jump of 221% compared to N356.5 million in the first half of 2023.
The increase happened because more goods were moved by train, showing that railways are becoming more important for moving things in Nigeria.
More Goods Moved by Train and Pipeline
In the first half of 2023, 116,902 tons of goods were moved by train. But in the first half of 2024, this number jumped to 304,409 tons, more than double. This big increase in goods moved also meant more money, N1.14 billion in 2024 compared to N356.5 million in 2023.
Besides trains, NRC also moved more goods by pipeline. In the first half of 2023, 2,856 tons were moved by pipeline. By the first half of 2024, this number was 13,940 tons.
This increase in pipeline goods led to more money too, with N101.2 million earned in 2024, a big jump from N12.8 million in 2023.
Passenger Services and More Money
The NRC also made more money from people using trains. The number of passengers went up from 915,842 in the first half of 2023 to 1.36 million in the first half of 2024.
This increase in passengers brought in N3.11 billion in the first half of 2024, up from N1.87 billion in the first half of 2023. This shows that more people are using trains to travel.
Also, other ways the NRC makes money went up a lot, reaching N1.02 billion in the first half of 2024 compared to N52.9 million in 2023.
What You Need to Know
The big increase in money NRC made in the first half of 2024 comes at a time when many businesses are looking for other ways to move things, instead of using the road.
Road transportation has become very expensive and often slow because of rising fuel costs and traffic jams.
As the cost of fuel keeps going up and the roads get more crowded and less maintained, moving stuff by road is getting really expensive.
Because of this, more Nigerians, especially those in logistics, farming, and manufacturing, are choosing railways as a cheaper and more reliable way to move lots of goods.
In June, the Minister of Transportation, Said Alkali, mentioned that starting cargo train services on the Lagos-Kano route would make food cheaper and make the roads last longer.
He also said that the benefits of starting these train services again include cheaper transport costs and lower business expenses.
The NRC has also received 17 new cargo wagons to help move goods on national rail networks.
This is part of the efforts launched by the Federal Ministry of Transportation in June to make businesses operate more smoothly. NRC Managing Director, Fidet Okhiria, said this move is part of making it easier to do business in Nigeria.