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.

Join our WhatsApp Channel

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.

+ posts

Featured Stories

Latest from Business

Black Market, Official Window Dollar Rates' Gap Widens To N127 After BDCs Hike USD Price

Dollar Rate Increases To N1,366/$ In Official Market

On Thursday, February 5, N1,366.05 per dollar was the official rate for the United States (US) currency in the Nigerian foreign exchange market (NFEM), rising above the N1,358.28 kobo per $1 reported on Wednesday, February 4. This represents a N7.72 kobo increase

Nigerian Stock Market Cap Hits N109.12trn — up by N1.26trn

The Nigerian Exchange (NGX) said the bourse’s market capitalisation increased from N107.86 trillion, recorded on Wednesday, February 4, to N109.12 trillion on Thursday, February 5, representing an increase of N1.26 trillion. NGX said the all-share index (ASI) expanded by 1,975.18 basis points
John Holt, CWG, Others End Nigerian Stock Market Losing Streak With N141.70bn Gain

NGX Market Cap Rises By N1.36trn, Traders Exchange N20.56bn Shares

The market capitalisation of the Nigerian Exchange (NGX) increased by N1.36 trillion to N107.86 trillion on Wednesday, February 4, up from the N106.49 trillion reported on Tuesday, February 3. Also, the all-share index (ASI) appreciated to 168,030.18 ASI, from 165,901.57 ASI, representing a
Previous Story

Cape Town to host the 8th Africa Fintech Summit

Food Inflation: South Africa Suspends Anti-Dumping Duties For Frozen Chicken Imports
Next Story

Food Inflation: South Africa Suspends Anti-Dumping Duties For Frozen Chicken Imports

Don't Miss

Nigeria’s Oil Production Declines By 33,000 Barrels As OPEC Reports Setback In September

Taxes, Not Oil Prices, Driving Fuel Costs- OPEC

The Secretary General of the Organisation of Petroleum Exporting Countries
Cryptocurrency fraudster

Court Nails $5,576 Cryptocurrency Fraudster

The Economic and Financial Crimes Commission, EFCC, on Monday, March