RAILWAY IN NIGERIA

Introduction 

A century after Richard Trevithick built the first operational steam locomotive in Wales, the first railway in Nigeria was constructed between Lagos and Ibadan in 1891 under the British colonial administration with the primary purpose of facilitating the exploitation of Nigeria’s natural resources, such as tin, coal, and petroleum. The railway was also intended to promote trade between Nigeria and other countries which made the train port trade a major part of the colonial economy of Nigeria. They were built solely to favor favour the colonial administration and European traders by bypassing or ignoring traditional trade routes to transport goods and people at low cost. The railway network expanded over the next few decades, and by the time Nigeria gained independence in 1960, there were over 3,000 kilometers of railway lines in the country.  

Rail transport is a potential mode of passenger and freight transportation that can serve the needs of a variety of groups in Nigeria, including industrialists and marketers, rural dwellers, and rural-urban commuters. It can be used to transport goods and raw materials over long distances, which can help to reducereducing costs and improvinge efficiency. It can also be used to transport farm produce to markets, which can help to improveimproving food security and reducing e poverty. In this article, we would will look at the railway system in Nigeria, revenue generation and future. 

Nigerian Railway Corporation (NRC)

The Nigerian Railway System is the oldest modern form of transportation in Nigeria. It was initially developed by private interests to facilitate the movement of bulk goods from the hinterlands to the seaports and vice versa. It uses a 1067mm cape gauge track system and only 30 kilometers of its track is double track, within the Lagos area. The first rail line from Lagos to Ibadan (193 kilometers) was constructed between 1898 and 1901 and was initially used to transport goods and raw materials. However, the company also operated passenger trains, and the railway quickly became a popular mode of transportation for people living in Lagos and Ibadan. 

The Lagos Government Railway commenced operations in March 1901 and was extended to Minna in 1911. It met the Baro–Kano Railway Station that was built by the government of Northern Nigeria between 1907 and 1911. The two lines were amalgamated in 1912, commencing nationwide rail service under the name Government Department of Railways. The railway (Lagos-Kano) reached its northeastern terminus of Nguru in 1930. However, the Eastern Railway was built to Port Harcourt between 1913 and 1916 after coal was discovered at Udi. It was extended to Kaduna via Kafanchan in 1927, connecting the Eastern Railway to the Lagos–Kano Railway. With the enactment of the Nigerian Railway Corporation Act of 1955, the company assumed its current name and the exclusive legal right to construct and operate rail services in Nigeria. The Eastern Railway was extended to its northeastern terminus of Maiduguri between 1958 and 1964 and the rail network attained its maximum extent shortly after Nigerian independence in 1964 with a network that consists consisted of single and double track lines and used to transport passengers and goods. 

In addition to the NRC, there are several private companies that operateseveral private companies operate freight trains in Nigeria. These companies include;include West African Rail Services (WARS), Kaduna Rail Mass Transit (KMRT), and Lagos Rail Mass Transit (LRMT). These private companies are investing in new trains and infrastructure, and they are helping to improve the efficiency of freight transportation in Nigeria.

Price of Train Tickets in Nigeria

The current prices of passenger train tickets in Nigeria range from NGN2,500 to NGN9,000 and they vary according to the class and distance. It was relatively cheaper until reviewed in 2022 by the NRC. 

Commercial Routes and Service

The Nigerian Railway Corporation (NRC)’s freight services include the transportation of coal, cement, steel, food, and other commodities. It operates a mix of old and new dedicated trains and currently use uses Chinese-made CRRC HX3C and American-made GE ES44AC freight trains on the Lagos-Ibadan standard gauge railway line. These trains can travel at speeds of up to 120 kilometers per hour and can haul up to 1,500 tons of freight. The NRC provides services such as; covered wagons suitable for loading dry goods like cement and general merchandise, open wagons suitable for loading dry goods such as cars, billets, etc., special wagons, and tank wagons – for liquid goods, baggage vans suitable for parcels, household items and other courier services and SBX/CBX for animals/general goods and farm products. 

The specific products transported by train on a particular route will depend on the demand for those products in the areas served by the route. For example, the Lagos-Kano railway line transports a lot of petroleum products, as Lagos is a major port city and Kano is a major industrial city. The Port Harcourt-Enugu railway line transports a lot of agricultural products, as Port Harcourt is a major oil city and Enugu is a major agricultural center.  The functional railways in Nigeria are the Lagos-Ibadan standard gauge railway, the Kano-Kaduna standard gauge railway, the Port Harcourt-Maiduguri standard gauge railway, the Warri-Itakpe standard gauge railway, and the Abuja Light Rail. The non-functional railways are the Lagos-Kano narrow gauge railway, the Port Harcourt-Enugu narrow gauge railway, and the Niger Delta narrow gauge railway. 

Source: Research Gate

The country has two major cCape gauge rail lines which are the; The Western Line connecting Lagos on the Bight of Benin to Nguru in the northern state of Yobe, over 1,126 kilometers (700 mi) and the Eastern Line connecting Port Harcourt in the Southeast to Maiduguri in the northeastern state of Borno, near the border with Chad. There are also several branch lines like the Linking Line connecting Kaduna on the Western Line to Kafanchan on the Eastern Line, Ifo–Ilaro (Western Line), 20 km (12 mi), Minna–Baro (Western Line), 150 km (93 mi), Zaria–Kaura Namoda (Western Line), 245 km (152 mi), Kuru–Jos (Eastern Line), 55 km (34 mi), and the Baro-Kano Railway Station (Northern Line), 200 km (120 mi).

In 2007, the World Bank estimated that repairing the existing narrow-gauge railway lines in Nigeria could increase rail freight to 4.2 million tonnes within four years and passenger numbers to 10 million. However byIn 2018, goods/ cargo transported by rail in Nigeria totaled totalled about 328,630 tonnes and . In that same year, roughly three million passengers in Nigeria traveled travelled by rail.

Source: Statista

As of 2023, only 2,970 kilometers of the 3,500 kilometers of railway lines in Nigeria are being utilized, due to a lack of maintenance, poor security, and inadequate rolling stock. Most of the lines are cape gauge , which is 1067 millimeters wideand only. Only 669 kilometers of the railway lines are standard gauge. Cape gauge and standard gauge are two of the most common railway gauges worldwide. The cape gauge is 1,067 millimeters (3 ft 6 in) wide, while the standard gauge is 1,435 millimeters (4 ft 8+1⁄2 in) wide. The NRC operates a fleet of over 1,000 locomotives and carriages with most of the locomotives being diesel-powered. The NRC’s passenger services include intercity trains, commuter trains, and shuttle trains used for both passenger and freight services. The intercity trains connect major cities in Nigeria, such as Lagos, Abuja, and Kano, the commuter trains connect smaller towns and cities, and the shuttle trains provide short-distance transportation. 

However, the NRC soon entered a long period of decline due to inept management and a lack of maintenance of rail and locomotive assets. Following the In 1988, the NRC’s declared bankruptcy filing in 1988, and, all rail traffic was halted for six months. After that, trains resumed service on the tracks that were still usable. By 2002, passenger service was discontinued altogether. Later in 2006, plans were made to restore the rail lines and add new locomotives with foreign assistance. In December 2012, regular scheduled passenger service was restored on the Lagos to Kano line. 

Nigeria Railway and Revenue Generation 

The rehabilitation and expansion of the Nigerian railways is a major undertaking, but it is essential for the country’s economic development. The railways can help to move people and goods more efficiently and cost-effectively, which can boost economic growth. The railways can also help to connect people and communities, which can improve social cohesion. In 2022, the Nigerian government announced plans to invest $1.5 billion in the rehabilitation and expansion of the country’s railways. This investment was expected to lead to the construction of new standard gauge lines and the rehabilitation of existing cape gauge lines. The government also plans to increase the number of locomotives and carriages in the NRC’s fleet.

Additionally Iin recent years, there has been a renewed interest in the development of the Nigerian railway and according to the National Bureau of Statistics’ Transport sector report, the Nigerian Railway Corporation witnessed revenue growth in 2021 with a total number of 2.714 million passengers, a significant increase from the previous year’s figure of 1.020 million passengers. Trains used for transporting goods also saw an increase in the volume of goods transported from 87,440 tTonnes in 2020 to 168,301 tonneTons in 2021. In the second quarter of 2021, passenger revenue accounted for the majority of rail transportation revenue in Nigeria, generating 1.1 billion Nigerian naira (NGN) or approximately 2.6 million U.S. dollars. In the same period, goods or cargo transported by rail generated an estimated 72 million NGN or 173,000 U.S. dollars.

Source: Statista

According to the National Bureau of Statistics (NBS), in the fourth quarter of 2022, the number of rail transport passengers in Nigeria increased by 30.10%, from 1.03 million in Q4 2021 to 1.34 million in Q4 2022. However, the volume of goods transported by railrail freight transport decreased by 1.50%, from 51,726 tons to 50,686 tons. The Nigerian Railway Corporation (NRC) received N1.15 billion from passengers in Q4 2022, down by 39.54% from N1.91 billion in Q4 2021. The NRC also received N157.23 million from goods/cargos in Q4 2022, up by 63.56% from N96.13 million in Q4 2021. Other income receipts stood at N382.17 million, up by a whopping 3,316.18% from N11.19 million in the same period of the preceding year.

The Nigerian Railway Corporation (NRC) suspended its Abuja-Kaduna train service in March 2022 after it was attacked by gunmen. This led to a 53.65% decline in passenger traffic, from 953,099 passengers in Q1 2022 to 441,725 passengers in Q1 2023 and a revenue decrease for NRC byby 63.02% in the first quarter of 2023Q1 2023 to N768.44 million, from N2.08 billion in Q1 2022to N768.44 million. The NRC’s freight revenue from goods and cargoes carriage, however, increased by 99.28%, from N90.96 million to N181.27 million. This was due to an increase in the volume of goods transported by rail. The NRC’s other receipts also decreased by 41.02%, from N57.92 million to N34.17 million. 

The Nigerian government has not invested enough in the railway sector in recent decades, which has led to a lack of maintenance and repairs. This has made the railway system unreliable and unsafe. The decline of the railways in Nigeria can be attributed to several factors, including lack of investment, poor management, sabotage, and competition from other modes of transportation.

The Future of Railway in Nigeria

In China, the construction of a new high-speed railway line between Beijing and Shanghai has helped to boost economic growth in the region. The line has reduced travel time between the two cities, which has made it easier for businesses to operate and has led to increased investment. With In India, the expansion of the railway system has helped to reduce poverty and improve social cohesion. The system has provided a reliable and affordable transportation option for people in rural areas, which has helped them to access jobs and education.

 The government of NigeriaNigerian government is investing in the railway sector and plans to rehabilitate the non-functional railways and construct new lines. This will help to improve the efficiency of the railway system and make it a more viable option for transportation. The shipment of 86 freight trains that arrived in Nigeria in 2021 are is to be used on the standard gauge railways, such as the Abuja-Kaduna Railway, Itakpe-Warri Railway, and Lagos-Ibadan Railway. The NRC is alsoalso has plansning to purchase more modern freight trains in the coming years to improve the efficiency of the freight transportation system and reduce the cost of transporting goods. The Nigerian government allocated N20.45 billion to the Nigerian Railway Corporation (NRC) in the 2023 budget. This includes N4.31 billion for the acquisition of new locomotives, coaches, and wagons. For example, the Lagos Blue Line, a light rail system that was recently completed in Lagos, Nigeria, and is expected to go live in September 2023 is expected to carry more than 500,000 passengers daily, reduce traffic congestion, and increase the state’s internally generated revenue (IGR). In addition, the Nigerian Railway Corporation (NRC) was set to commence the movement of freight from the Apapa ports to Moniya in Ibadan on August 1, 2023, and the national railway network would be able to facilitate the movement of over 3.2 million tonnes of cargo per year. NRC Director of Operations, Mr. Niyi Ali in a publication by Daily Trust confirmed that the freight service has commenced the transportation of cement product products from Papalanto to Moniya and hopes to move more products such as petroleum. This development comes after the NRC encountered impediments in the complete linkage of the track to the Apapa Port quay, including a radioactive scanner belonging to the Nigerian Customs Service. 

Internationally speaking, the Nigerian Railway Corporation (NRC) network does not yet connect to the railway networks of neighboring neighbouring countries. However, construction began in February 2021 on a cape-gauge link from Kano, Nigeria to Maradi, Niger, which is the second-largest city in Niger. The link is being built by Mota-Engil SGPS SA, a Portuguese construction company, and is expected to be completed in 2023. This will be one of the first rail lines in Niger.

Conclusion

The Nigerian government is considering a few proposals for new train networks, including a coastal railway, a trans-Saharan railway, a network of intercity railways, a light rail system in Lagos, and a freight railway. The development of these train networks has the potential to significantly improve the country’s economy and quality of life. The coastal railway would connect the major ports on the country’s coast, such as Lagos, Port Harcourt, and Calabar and would help to boost trade and commerce and reduce the cost of transporting goods. The trans-Saharan railway would connect Nigeria with other countries in Africa, such as Niger, Mali, and Algeria and It would promote regional integration and economic development. The network of intercity railways would connect major cities in Nigeria, such as Lagos, Abuja, Kano, and Enugu. The freight railway would be used to transport goods around the country, which would help to reduce the cost of transportation and improve the efficiency of the economy.

The Nigerian freight rail corridor and infrastructure construction industry offers vast investment opportunities for international investors and local firms. The government is seeking to establish public-private partnerships (PPPs) to finance and manage these ambitious projects. PPPs have been successful in other countries, such as India and Brazil, and Nigeria is keen to replicate this success. Collaborating with private entities will not only alleviate financial burdens but also introduce cutting-edge technology and expertise into the industry.

Social Media Content 

1. The first railway in Nigeria was constructed between Lagos and Ibadan in 1891 under the British colonial administration with the primary purpose of facilitating the exploitation of Nigeria’s natural resources, such as tin, coal, and petroleum.
2. The prices of passenger train tickets in Nigeria range from NGN2,500 to NGN9,000 and they vary according to the class and distance. It was relatively cheaper until reviewed in 2022 by the NRC.