Abuja-Kaduna rail shutdown costs NRC N531m in revenue losses
By Mike Ochonma
The Nigerian Railway Corporation (NRC), which manages train services across the country says inactivity on its Abuja-Kaduna route between March and August led to losses of N531 million in revenues.
Fidget Okhiria, managing director of the corporation explained that lack of diesel to power trains also contributed to the reduction in trips done on the Lagos-Ibadan train services. He spoke on developments in the corporation to the media in Lagos.
Okhiria declared that contrary to rumours in circulation, the Nigerian Railway Corporation has not stopped the Lagos-Ibadan train services, but rather the route operates four train services per day, adding that for the Warri-Itakpe route the NRC does two trains per day.
He stated but for the Abuja incident the NRC had projected it would be running 10 trips on the Lagos-Ibadan route, with five trips each way.
According to the NRC managing director, “We were already doing 10 trips per day on the Abuja-Kaduna and thought that by now, it would have increased to 12; six to and six from either end, so that people can properly schedule their movement using the train.
“Regrettably, due to inactivity on the Abuja-Kaduna train which was caused by the last terrorist attack, we have recorded a shortfall of N531 million on the Abuja-Kaduna route from March to August 2022. The shortfall is from expected income following the disruption occasioned by the train attack,” Okhiria said.
According to him, while the NRC management is trying to resolve that issue and people are building confidence, the corporation is facing another challenge in the astronomical rise in the price of diesel from just over N300 to over N1000/litre.
He noted that it was because of this that the Lagos-Ibadan route dropped to two, stressing that with what it earns it cannot pay for diesel.
“There are people providing security because of the situation all over the place. We have to hire separate security and pay them, whether the train runs or not. We have to pay light bills, and still have to buy diesel for the generators servicing the stations, among other things despite the inactivity along the Abuja-Kaduna train route and the drop on the Lagos-Ibadan train services.
“So you can see that what we earn is also eroded by operational cost even in the midst of challenges,” Okhiria said, almost in lamentation.
On the movement of cargoes from the ports via the standard gauge rail, he explained that the movement of cargoes with the Lagos-Ibadan train would start in November 2022.
“We are currently meeting with some maritime stakeholders, including APM Terminals and ENL Consortium, to ensure that freight runs on the standard gauge from both terminals to Papalanto and Abeokuta before November. We are working hard to ensure that the access roads and freight yards are properly put in place so that the equipment for rolling stocks is put in place,” he said.
Okhiria also disclosed that the management of NRC is meeting with some individuals on the usage of the warehouses and freight yards, and hope that before November the NRC will start moving freight on the Lagos-Ibadan standard gauge rail.