- Nigeria Realises N1.6 Billion from Railway in Six Months -NBS
The Federal Government of Nigeria has realized the sum of N1.6 billion from the Nigerian Railway Corporation between January and June 2018, according to the National Bureau of Statistics (NBS) report on railway sector of the economy.
According to the report, the N1.6 billion was generated from passengers and cargoes within the period.
The details of the report reveal that the total amount of N849.01 million was realized from passengers, in the first and second quarter, while N310.36 million was generated from the transportation of cargoes, in the first and second quarter as well.
Again, the report showed that 748,345 passengers traveled by the rail in the first quarter and 730,289 passengers in the second quarter; revealing a 2.41 percent decline between the first and second quarter.
However, there was an increase in cargoes from 79,750 tonnes in the first quarter to 85,816 tonnes in the second quarter.
Speaking on this earlier, Rotimi Amaechi, the Minister of Transportation, remarked that the Federal government has been subsidizing the rail transportation sector with about N40 million each month.
Also, the Minister further stated that the railway corporation spends N56 million per locomotive, as against N16 million which is the income per locomotive.
He also pointed out, that the government is still under pressure from the sector to acquire more locomotives and coaches, as an increased number of people now resort to rail transportation as a result of its cost-effective advantage.
“We spend N56m per locomotive, and we get N16m. If we increase it (the fare), you will start abusing us. But you see, it is subsidised. So, the government is subsidising for you,” the minister stated.
This further gives weight to Federal Government’s diversification efforts targeted at broadening revenue generations and deepen growth.
The administration had insisted on economic diversification, saying revenue generation to GDP is too low to effectively diversify the economy, therefore, economic recovery and growth plan was launched to up revenue through infrastructural development and enhanced economic productivity.
While the results are yet to be seen, there are ongoing capital projects and a surge in tax generation when compared to the previous administration.