The Nigerian Railway Corporation (NRC) exceeded the Federal Government’s revenue target in 2025, generating N7.46 billion from passenger services—about 11 per cent above the N7 billion benchmark—driven largely by a rapid expansion in freight operations.
Data from the NRC’s operational fact sheet showed passenger traffic rose to 3.58 million in 2025 from 3.15 million in 2024, while freight revenue surged to N3.02 billion, up from N347.8 million in 2021—a near tenfold increase in four years. This growth was fuelled by expanded cargo services connecting port terminals to inland destinations and bulk haulage of commodities such as cement, steel, and industrial materials.
“Rail freight is returning as a major force in Nigeria’s transport economy,” said Dr. Kayode Opeifa. “Manufacturers and state governments are increasingly shifting bulk cargo back to rail.”
The development comes as Nigeria seeks to ease pressure on overstretched roads and lower the cost of moving goods nationwide.
Passenger revenue remains concentrated on high-density corridors such as the Lagos-Ibadan route, which serves as a key revenue anchor, while lower-frequency routes like Warri-Itakpe and Port Harcourt-Aba continue to face operational constraints.
Freight operations, however, are expanding across a wider footprint, with container movements from ports to inland depots and dedicated services for cement, gypsum, and steel delivering predictable volumes and stronger margins than passenger services.
Despite the strong performance, the NRC faces persistent funding challenges. Between 2010 and 2025, only 31 per cent of the N330.8 billion appropriated for capital projects was released, slowing infrastructure development and limiting network expansion. Analysts warn that sustained investment is essential to maintain growth and expand freight capacity.
Speaking at the Second International Railway Conference in September 2025, Dr. Jobson Oseodion Ewalefoh emphasised the need for consistent investment in transport infrastructure to support long-term growth.
Muhammad Iskeel Abdullahi, a public affairs analyst, noted, “Inconsistent allocations undermine the ability to expand freight capacity and integrate with ports and industrial hubs.”
Nevertheless, the NRC’s ability to surpass its revenue target signals improved operational efficiency and a shift toward a logistics-focused model, reflecting global trends where cargo transport increasingly drives rail profitability.
