NIGERIA: The ability of the Nigerian Railway Corporation (NRC) to surpass the N4.8 billion revenue it generated in 2024 is already under serious threat following multiple service disruptions to two of the Corporation’s major services, the Warri-Itakpe and Abuja-Kaduna Train services, checks by our correspondent have revealed.
Recall that the National Bureau of Statistics (NBS) in its 2024 report for railway earnings, said that the NRC revenue reached N4.8 billion in the first three quarters of 2024, with passenger services generating the majority of the income, reports Nigerian Tribune.
Findings by our correspondent have however revealed that with the suspension of the Abuja-Kaduna Train services following a derailment that left many injured, the Corporation is currently running only the Lagos-Ibadan train services because the Warri-Itakpe Train service is yet to resume operations since its second suspension on the 17th of July, 2025, after initial suspension in April 2025.
Speaking with our correspondent on the effect of the distortions on revenue and operations, a former President of the Nigerian Institute of Structural Engineers, Engr. Victor Oyenuga explained that definitely, the service disruptions will affect the NRC revenue.
According to Engineer Oyenuga, “Yes, the service disruptions will affect the NRC operations in terms of revenue and operations, but we need to give them time to rectify all the issues that has caused the trains to derail.
“Whether if the trains are not working will affect repayment of the Chinese loans is not what I will like to talk about since I don’t have details about the loans and its repayment pattern.
“However, I believe the trains have really changed the way people commute between Abuja and Kaduna and other areas of the country. So, it is in the best interest of all of us that the trains come back better and stronger.”
Also speaking on the constraint of the service disruptions on railway revenue and operations, the NRC Managing Director, Kayode Opeifa admitted that the revenue of the Corporation will be impacted.
“Definitely, our revenue will be impacted, but our concern now is not about money lost but on the quick recovery of every injured person onboard of that Abuja-Kaduna Train that derailed.
“Our focus is on taking care of the injured and ensuring that everybody quickly recovers. Also, we are focused on recovering the Rolling Stocks on the accident site and getting them fixed so that the service can quickly re-commence operations.
“With issues like this, there will definitely be human and monetary consequences. So many things will be affected when things like this happen. We are just happy that no life was lost.”
On whether the service distortions will affect existing $2 billion Chinese loans repayment and plans to access more funding, the NRC MD stated that, “At the NRC, we don’t discuss loans or repayment matters. You may wish to contact the Ministry of Finance in Abuja for clarifications on loan repayment pattern or applications for new loans for rail modernisation projects.
“What we deal with at the NRC is train operations and any revenue we generate are transferred to the federation coffers.
“So, if there is a decline in railway revenue due to what has recently happened, that does not affect repayment of loans taken for rail development because the federal government handles loan repayment itself. Railway revenue is not directly related with loan repayment. The revenue of the NRC is not what pays the Chinese loans. Government pays the loans. Government has many avenues through which it takes care of such issues.
“The service disruptions will not affect the repayment of the loans borrowed. Yes, revenue will dwindle due to what has happened to train operations in recent days, but that does not affect loan repayment. The loans collected so far are not tied to the railway revenue, that I know of.”
Also speaking on the issue, the National President of the Nigerian Union of Railway Workers (NURW), Comrade Innocent Ajiji explained that due to remittance of 60 percent of railway earnings into federation coffers, the servicing of debts borrowed by the federal government for railway development is being undertaken by the federal government, not the NRC.
In the words of Comrade Innocent Ajiji, “The collection and repayment of the Chinese loans borrowed so far for railway development is being carried out by the federal government through the Federal Ministry of Finance.
“The NRC does not even have the capacity to generate money that will pay workers’ salaries, let alone service the Chinese loan. Whatever the NRC generates, 60 percent goes into the federation coffers while 40 percent is used for railway operations.
“It is important for the public to take note that the NRC is not a revenue generation agency, but a service provider. So, the Federal Government is not depending on the NRC to repay the loans.
“The Abuja-Kaduna train has been suspended for the next one month while Warri-Itakpe was suspended for three weeks. Very soon, the two services will be back and running.”
