Nigeria’s railway cargo operations generated ₦657.03 million in revenue during the first quarter (Q1) of 2025, representing an 8.19 percent increase from ₦607.32 million recorded in the corresponding quarter of 2024, according to the National Bureau of Statistics (NBS).
The data, contained in the bureau’s Rail Transport Data Report for Q1 2025, show that the total volume of goods and cargos transported by the Nigerian Railway Corporation (NRC) rose by 13 percent year-on-year to 181,520 tons, compared to 160,650 tons in the same period of 2024.
Freight Growth Reflects Improved Rail Utilisation
The increase in freight tonnage and revenue reflects a steady improvement in Nigeria’s rail logistics network, particularly across the Lagos–Kano, Port Harcourt–Maiduguri, and Warri–Itakpe corridors.
Industry observers noted that the expansion of cargo handling capacity at NRC depots and the government’s renewed investment in transport infrastructure have helped boost the utilisation of rail for bulk cargo movement.
“The upward trend in cargo volume demonstrates renewed confidence in the railway system as a viable alternative for long-distance haulage,” a logistics analyst told Investors King. “It also aligns with the government’s drive to reduce pressure on highways and lower logistics costs.”
Drivers of Growth
According to the NBS, the rail freight sector benefited from increased agricultural exports, industrial goods movement, and rising domestic manufacturing output that relied on cheaper transport modes amid rising diesel costs in road haulage.
Analysts believe the moderate revenue growth compared to volume expansion suggests competitive pricing by the NRC to attract more corporate clients and reposition rail transport as a long-term logistics solution.
Sector Overview
Overall, the rail transport sector posted stronger numbers in Q1 2025, with total revenue — including passengers, goods, and other receipts — hitting ₦2.72 billion, compared to ₦2.05 billion in Q1 2024.
Passenger revenue alone accounted for ₦1.95 billion, up by 37.36 percent year-on-year, while total passenger volume reached 929,553 travellers, a 37.65 percent increase from the previous year.
Outlook
Industry analysts expect further improvement in rail freight revenue in subsequent quarters as the NRC expands its freight network capacity, upgrades wagon fleets, and integrates digital tracking systems to enhance operational efficiency.
However, they warn that sustained growth will depend on addressing infrastructure bottlenecks, security concerns, and funding constraints that have limited the full commercialisation of the rail transport system.
