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Nigerians Favour Rail Transportation for Goods

By Khadijat Kareem

April 03, 2024

+Why passengers don’t take advantage of trains?

Nigerians Favour Rail Transportation for Goods

Nigeria’s transport sector saw a substantial shift in 2023, with a strong preference for rail transport in the movement of commodities rather than passengers. 

Despite this change, the commission’s revenue rose to the highest it has been in the past five years.

This transition, as evidenced by the National Bureau of Statistics (NBS) data on the volume of products moved and income earned, indicates shifting patterns in the country’s transportation choices.

This increase in rail transportation highlights a rising trend among businesses and industries in the use of the railway system for the movement of commodities.

However, this trend is also worrying that Nigerians are not using one of the cheapest means of transportation for movement despite the high cost of other forms of transportation due to the rise in the price of petrol.

The NBS data reveals a remarkable increase in the volume of goods transported via rail in 2023, reaching more than double the volume transported in 2022.

On the other hand, the number of passengers who used railway transport fell from 3.21 million in 2022 to 2.18 million in 2023, a decline of over 1 million train passengers.

A Dataphyte analysis of PMS price inflation and transport inflation also reveals a strong relationship between fuel prices and transport prices.

According to data from NBS, from January 2023 to January 2024, there is a general upward tendency in PMS and transportation inflation.

This proves there is a relationship between the increase in the price of fuel and a hike in transport fares charged by vehicles that use petrol.

Train passengers are spared these extra costs. 

According to Dataphyte’s analysis, trains are not the most cost-effective mode of transportation for some routes. Buses had the lowest costs, while planes had the highest fares.

However, the bus fare estimates are for those buses boarded at public parks. The seating arrangements on these buses are not usually as comfortable as that on trains. 

So, trains may be cheaper than buses when costs and passenger comfort are considered together.