Revenue generated from rail passengers in 2025 exceeded the Federal Government’s target, signaling gradual recovery and growth in Nigeria’s rail transport sector despite lingering operational challenges.
The Federal Government of Nigeria had set a revenue target of 7.01 billion naira for rail passenger services in 2025. However, newly released data shows that the sector outperformed expectations, generating 7.77 billion naira, representing an 11 percent increase above the target.
According to figures from the National Bureau of Statistics, passenger revenue also recorded a 15.6 percent year on year increase from 6.72 billion naira in 2024, reflecting improved patronage and service expansion.
To support the sector’s recovery and growth, the government allocated 41.49 billion naira in the 2025 budget for rail infrastructure and modernization. Part of this investment was directed toward enhancing security surveillance systems along critical routes such as the Abuja Idu Kaduna corridor, which had previously experienced security incidents and operational disruptions.
Beyond passenger earnings, revenue from cargo transport also showed strong growth. Income from goods conveyed via rail rose by 17.4 percent to 2.29 billion naira in 2025, up from 1.95 billion naira recorded in 2024. This indicates increasing reliance on rail for freight movement.
However, revenue from other sources declined significantly by 59.5 percent, dropping to 606.5 million naira from 1.5 billion naira in the previous year.
Overall, total rail revenue grew modestly by 4.9 percent to 10.67 billion naira in 2025 compared to 10.17 billion naira in 2024. Quarterly analysis revealed fluctuations, with revenue peaking in the second quarter before declining in the third and fourth quarters due to reduced passenger and cargo activity.
Despite these variations, the rail sector’s performance highlights its potential as a key driver of transportation efficiency and economic growth in Nigeria.
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