Nigerian Gov’t’s N6 billion Train Revenue At Risk, As NRC Suspends Lagos-Kano Service

August 3, 2022
Train
Train

Train service through the Lagos-Kano and Ajaokuta routes have been suspended, casting doubt on the government’s ability to generate another N6.08 billion from passengers in 2022.

The Nigeria Railway Corporation (NRC) suspended services on the Lagos-Kano railway due to rising insecurity in Niger and Kaduna States, which are part of the routes of the train.

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According to the NRC, the August 1 attack on passengers along the Warri-Itakpe route, had necessitated the suspension of stoppage at Ajaokuta, although the Managing Director, Fidet Okhiria, said services will still continue on the route.

This will affect the yearly passenger growth in 2022, as this routes will be closed to a significant number of passengers. Last year, NRC had conveyed over 2.71 million passengers, surpassing the 1.02 million passengers recorded in 2020.

Consequently, the revenue generated for the year will be negatively impacted by the suspension, slowing down the revenue growth of the NRC, which had reported N6.08 billion in 2021, rising by 199%, when compared to the N2 billion of 2020.

Recall that the train operation on the Abuja-Kaduna route has been on suspension since the deadly attack and kidnap of passengers on March 28. The route generates at least N300 million every month according to the former minister of transportation, Rotimi Amaechi.

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