N4.8 Billion Railway Revenue Under Threat as Abuja-Kaduna and Warri-Itakpe Services Remain Suspended

The Nigerian Railway Corporation (NRC) faces a significant risk of missing its N4.8 billion revenue target for the year, following the suspension of services on two major rail corridors: the Abuja-Kaduna and Warri-Itakpe routes.

Operations on the Abuja-Kaduna line were halted after a recent derailment incident that resulted in multiple passenger injuries. Meanwhile, the Warri-Itakpe service has been suspended since July 17, marking the second shutdown this year after an earlier pause in April. The Lagos-Ibadan route is currently the only active major service still in operation.

According to data released by the National Bureau of Statistics (NBS), the NRC generated N4.8 billion in passenger revenue during the first three quarters of 2024, with the now-suspended lines contributing substantially to this income. The continued suspension of these services raises concerns about the corporation’s ability to meet its annual financial objectives.

In response to the situation, Engr. Victor Oyenuga, former president of the Nigerian Institute of Structural Engineers, emphasized that while the disruptions will undoubtedly affect revenue, passenger safety and infrastructure integrity must remain the immediate priority.

NRC Managing Director, Kayode Opeifa, acknowledged the financial implications but reiterated the corporation’s commitment to passenger welfare and service restoration. He also clarified that repayment of the $2 billion Chinese loan used for railway modernization is managed by the federal government and is not directly dependent on NRC-generated revenue.

Efforts are underway to restore services on both affected corridors, with the NRC prioritizing comprehensive safety checks and system repairs before reopening the lines to the public.

By Oshuniran Sheriff Ola