USINESS & ECONOMY FG earned N1.16bn from rail in six months – NBS

Between January and June this year, the Federal Government generated a total amount of N1.16bn from the rail transportation system.



The figure was contained in a report on the railway sector, which was prepared by the National Bureau of Statistics.



The N1.16bn, according to the report, was generated from two main revenue sources.



These were passengers, from whom a total amount of N849.01m was generated during period; and cargoes from which about N310.36m was earned.



A breakdown of the N849.01m revenue showed that the sum of N435.96m was generated from passengers in the first quarter of this year, while the balance of N413.05m came in during the second quarter.



From the transportation of cargoes, the report stated that the government generated N159.08m in the first quarter, while the second quarter recorded N151.28m as revenue.



The report read in part, “Revenue generated from passengers in Q2 2018 was put at N435,965,777 as against N413,057,019 in Q1 2018.



“Similarly, revenue generated from goods/cargo in Q2 2018 was put at N159,079,963 as against N151,279,394 in Q1 2018.”



Further breakdown of the performance of the sector showed that 730,289 passengers travelled through the rail system in the second quarter of this year as against 748,345 passengers recorded in the first quarter.h



This represents a decrease of 2.41 per cent during the period under review.



Similarly, the report noted that 85,816 tonnes of goods/cargoes travelled through the rail system in the second quarter as against 79,750 tonnes recorded in the first quarter.



The Minister of Transportation, Rotimi Amaechi, had recently said the Federal Government was subsidising railway transportation, adding that the development was making the government to lose about N40m monthly in revenue.



He stated, “We are still under pressure to have more locomotives and more coaches because more people are now using the rail. But you know typical Nigerians, they like free things.



“We spend N56m per locomotive, and we get N16m. If we increase it (the fare), you will start abusing us. But you see, it is subsidised. So, the government is subsidising you.”
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