Nigeria’s rail transport sector recorded an improvement in operational performance in the first quarter (Q1) of 2025 as strong growth in passenger traffic, cargo volume and revenue generation bolstered the industry’s overall performance, according to the National Bureau of Statistics (NBS).
The latest Rail Transport Data Report shows that a total of 929,553 passengers travelled by rail during the period, compared to 675,293 passengers in the corresponding quarter of 2024. This represents a 37.65 percent increase year-on-year.
The report attributed the surge in ridership to increased rail utilisation on key routes such as Lagos–Ibadan, Abuja–Kaduna, and Warri–Itakpe, alongside improved service reliability following the rehabilitation of critical infrastructure managed by the Nigerian Railway Corporation (NRC).
Revenue from Passengers Rises 37%
Passenger transport generated ₦1.95 billion in revenue during the quarter, up from ₦1.42 billion recorded in Q1 2024, indicating a 37.36 percent increase.
The growth, according to the NBS, reflects a recovery in public confidence in the rail system and the gradual shift of travellers from road to rail transport due to safety, affordability, and convenience.
Cargo Volume and Revenue Improve
The volume of goods and cargos transported by rail rose to 181,520 tons in Q1 2025, up from 160,650 tons in the same quarter of 2024. This represents a 13 percent increase in freight movement.
Revenue from cargo operations stood at ₦657.03 million, compared to ₦607.32 million recorded in Q1 2024, reflecting an 8.19 percent year-on-year increase.
The report linked this growth to higher logistics demand from manufacturers and agricultural exporters leveraging the NRC’s freight network for bulk cargo movement between key industrial corridors.
Other Receipts Surge Over 350%
The NBS further disclosed that “other receipts” — comprising station services, lease income, and sundry charges — rose sharply to ₦115.68 million in Q1 2025, a 355.39 percent jump from the ₦25.40 million recorded in the corresponding quarter of 2024.
This category represents the fastest-growing revenue stream within the rail transport segment, indicating expanding ancillary services and improved monetisation of station facilities nationwide.
Total Revenue and Economic Context
Overall, Nigeria’s rail transport system generated approximately ₦2.72 billion in total revenue in Q1 2025, compared to ₦2.05 billion a year earlier.
Analysts say the steady rise in rail utilisation underscores the federal government’s investment in transport infrastructure under the “Renewed Hope” agenda, aimed at improving mobility, reducing logistics costs, and strengthening regional trade.
Although the NBS noted that pipeline transport data for the quarter were unavailable, the performance of the rail sector suggests that the transport industry remains a critical driver of non-oil growth and domestic connectivity.
Outlook
With continued investments in new locomotives, upgraded terminals, and digital ticketing systems, Nigeria’s rail sector is positioned for further growth through 2025.
However, industry observers stress that sustained funding, security assurance, and efficient maintenance will be essential to consolidate gains and expand the network’s contribution to GDP.
If effectively managed, the sector could play a pivotal role in easing road congestion, supporting freight diversification, and promoting industrial competitiveness across Nigeria’s major trade corridors.