Owing to incessant attacks and kidnapping by gunmen on rail lines, a fresh data has shown a significant drop in revenue generated by Nigerian Railway Corporation (NRC).
The document stated that the total revenue generated by the NRC from passengers dropped by N1.48 billion in the second quarter of 2022.
Investors King had reported various attacks on the transportation sector, especially the rail system.
Recall that in March 2022, over 900 people were on board an Abuja-Kaduna train when it was attacked along the route. While some were lucky enough to escape, the majority were killed on the spot or captured.
Economic experts had said this incident would create fear and anxiety in other individuals who may have been eager to try out railway transportation, and it also demonstrates that rail transportation, which was formerly seen to be a safe mode of transit, is now unsafe.
Meanwhile, the NRC data contained in a report by the National Bureau of Statistics, titled: ‘Rail Transportation Data Q2 2022’, revealed that the N1.48 billion loss represents a decline of 71 percent when compared with the first quarter of the year under review.
The report added that 422,393 passengers travelled through the rail system in Q2 2022 as against 953,099 passengers recorded in the first quarter of 2022.
It was discovered that the decrease in the number of passengers also had a severe negative effect on the revenue generation of the corporation.
For instance, the revenue generated from passengers in Q2 2022 was N598, 736,300, while for Q1 2022; the revenue generated was N2, 077, 836,686.
While there was a shortfall in revenue from passengers, the report showed that there was an increase in the revenue generated from goods and cargo.
Analysis of the figure shows that the revenue generated from goods/cargos in Q2 2022 was N86, 007,680, while revenue generated from goods/cargos in Q1 2022 was N71, 769,967.
However, in another report made available by the NBS, the NRC generated N2.41 billion in revenue from passengers in 2019, as official statistics further revealed that passenger income was the most important source of revenue in 2019.
For the same year, revenue from goods or cargo was N362.88 million, while revenue from other income receipts was N64.58 million, totaling N2.84 billion for the year.
In a breakdown of revenue generation, the report showed that as a result of the COVID-19 pandemic’s suspension of many major operations, the revenue generated from these three sectors; passengers, goods or cargo, and other income receipts, declined in 2020.
According to report, a total of N1.75 billion in passenger revenue was generated, which put a decline of 28 percent as against the previous year.
Meanwhile, revenue from goods or cargos fell by 92 percent to N5.19 million, while total revenue from other income receipts fell by 22 percent to N281.35 million.
Rail transportation brought in N2.03 billion at the conclusion of the year, with revenue from passengers contributing the highest income.
Passenger revenue more than quadrupled in 2021 to N5.70 billion, while goods or cargo revenue increased to N317.57 million. Total revenue for the year was a massive N6.08 billion, with revenue from other income receipts amounting to N66.80 million.
