The Nigerian rail system generated N1.69 billion in passenger revenue during the second quarter of 2024, marking a 53.14% increase from N1.10 billion in the same period last year. This significant growth reflects a rebound in passenger travel, with a total of 689,263 individuals using the railways, up 45.38% from 474,117 passengers in Q2 2023, according to a report released by the National Bureau of Statistics on Thursday.
The volume of goods transported by rail also saw impressive gains, with 143,759 tons moved in Q2 2024, compared to just 56,936 tons in Q2 2023. Revenue from goods transport reached N537.36 million, a staggering 206.68% increase from N175.22 million the previous year. Additionally, the Nigerian Railway Corporation reported transporting 5,940 tons of goods through pipelines in Q2 2024, significantly up from 2,856 tons in Q2 2023.
Revenue from pipeline goods transport amounted to N42.08 million, compared to N12.81 million in Q2 2023. Other revenue sources generated N994.68 million, a remarkable 5,206.68% rise from N18.74 million in the same quarter last year.
Despite these positive trends, challenges remain. Earlier reports indicated that in the first quarter of 2024, Nigeria spent 2,470% more on servicing railway-related debt than it earned from rail services. In 2023, the Nigerian Railway Corporation had generated N1.07 billion from passenger services, underscoring the ongoing financial hurdles faced by the rail sector as it seeks to balance revenue generation and debt obligations.