As Nigerians seek more affordable travel options amidst rising airfares, the rail sector recorded a significant increase in revenue for Q2 2024. The sector generated N1.69 billion from passenger transportation, reflecting a 53.14% growth compared to N1.10 billion in the same period last year.
A recent report by the National Bureau of Statistics (NBS) indicates that the total number of rail passengers reached 689,263, marking a 45.38% rise from the 474,117 recorded in Q2 2023. The surge in passenger numbers has been attributed to the affordability and reliability of rail transport as an alternative to costly air travel.
The movement of goods by rail also experienced a substantial increase, with 143,759 tons transported in Q2 2024, a significant leap from 56,936 tons in the same quarter last year. This growth underscores the expanding role of rail transport in Nigeria’s logistics and supply chain sectors.
Moreover, the Nigerian Railway Corporation (NRC) reported a pipeline transportation volume of 5,940 tons, up from 2,856 tons in Q2 2023. Revenue from goods transported via rail soared by 206.68%, reaching N537.36 million compared to N175.22 million in the previous year. Pipeline transportation revenue also increased to N42.08 million, up from N12.81 million in Q2 2023.
Overall, the rail sector’s other revenue streams amounted to N994.68 million in Q2 2024, a staggering rise of 5,206.68% from just N18.74 million during the same period last year. This impressive performance highlights the sector’s growing contribution to Nigeria’s economy.
Meanwhile, the Minister of Marine and Blue Economy, Adegboyega Oyetola, emphasised the need for Nigeria to invest in upgrading port facilities to ensure the nation remains competitive in the global seaborne trade. Speaking at an event in Lagos to mark World Maritime Day, themed “Navigating the Future: Safety First,” Oyetola, represented by the Permanent Secretary, Michael Oloruntola, called for a re-examination of the safety and security challenges facing the maritime sector.
He highlighted the ministry’s proactive measures to enhance the sector by embracing new technologies and fostering innovation to drive growth. “Digitalisation and automation of port operations are key initiatives aimed at enhancing safety, security, and efficiency,” Oyetola stated. He also noted that President Bola Tinubu’s administration is investing heavily in port modernization through Public-Private Partnerships (PPP) to improve operational efficiency and reduce costs.
The Managing Director of the Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho, revealed that the deployment of the Port Community System (PCS) is in its conclusive stages, paving the way for the operationalization of the National Single Window Project of the Federal Government. This modernization is expected to make Nigerian ports more competitive globally, supporting the broader goals of the World Ports Sustainability Program.
Dr. Dayo Mobereola, Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), urged stakeholders to prioritise safety and innovation while addressing the challenges in the maritime sector. He noted that issues such as technological advancements, environmental concerns, and evolving global trade present both challenges and opportunities for the industry. Mobereola emphasised the importance of investing in safety technologies and capacity building to ensure Nigeria meets international standards.
The Chairman of the Senate Committee on Marine Transport, Wasiu Sanni, reiterated the National Assembly’s commitment to policies that promote safe operations in the maritime sector. He called for adherence to international safety conventions, stressing that safety should be the guiding principle for Nigeria to become a leading player in the global maritime community.
Leave feedback about this