The Federal Government spent $62.66m to service railway-related debts in the first quarter of 2023, according to Nigeria’s external debt service payments report by the Debt Management Office.


Between January and March 2023, The Nigeria Railway Modernisation Project (Idu-Kaduna Section) took $23.1m

The Nigeria Railway Modernisation Project (Lagos-Ibadan Section) gulped $15.49m.

The PUNCH also learnt that the Nigeria Abuja Light Rail Project gulping $24.07m.

The total amount spent in Q1 2023 is a slight increase from the $61.73m spent in Q1 2022.

The rising railway debt servicing costs occurred as the government struggled to generate revenue from the railway sector.

The National Bureau of Statistics disclosed that rail transportation passengers declined by 53.65 per cent from 953,099 in the first quarter of 2022 to 441,725 in the first quarter of 2023.

The statistics body noted that a total of 59,966 tonnes of goods were transported in the first quarter of 2023, compared to 39,379 tonnes reported in the same quarter of 2022.

In terms of revenue generation, N768.44m was received from passengers over the period, a decrease of 63.02 per cent relative to N2.08bn in the same quarter of the previous year.

A professor of Economics at Olabisi Onabanjo University, Sheriffdeen Tella, recently said a number of factors, such as insecurity, among others, affect the patronage of train services in the country.

He said, “It’s being affected by insecurities, the cost of transportation, i.e., fare compared with other modes, and maintenance of the facilities, i.e., maintaining a standard of operation.”

Source: https://punchng.com/Railway-debt-servicing-gulped-$63m-in-Q1-says-DMO

Their earning is so meagre it was not stated. This is why govt was wrong to take huge loans to build those railways. In this economy where Dangote,BUA and co make billions, govt is telling us NNPCL and co can only make losses.

How is this even possible?

Rail transport make most income on Cargo transportation and not human transport

The trailer and truck owners won't let railway cargo function



.

Lol in one word na Subsidy on Train....

What is the returns on investment of the projects, how come it could not sevice a good part of the loan.


Abuja light rail us just there as tourist attraction, no business trip on it.

I wish the NASS checked the budget well before signing.

All these agencies coming out with facts and figures did not tell the last regime the truth suddenly they woke up.

Nawa o !

The railway project is a complete waste of funds.

Who will board the train when security is not guaranteed?

Up till today, no single person has been arrested or prosecuted on the attack that happened to Abuja-kaduna passengers last year.

Why will the revenue not decline?

Nigeria is a failed country

By the time APC is done with Nigeria, I'll see what's left of those supporting them for ethnic and religious reasons.


After all what we went through under Buhari, does any Nigerian ever need glasses before they can see that APC must never be allowed anywhere near this country's management ever again

A very funny thieving news! You'd think a new railway was built! The aforementioned billion billions mentioned are primarily allocated to the restoration of the antiquated railways constructed during the colonial era! No bi new one dem build o! Na just to add finishing touching to already existing ones and very few substandard ones built!

But how come these billion billions don't stop insecurities on the way?


Come to think of it...so Nigeria with a very bad maintenance culture is claiming huge sums for servicing? Ha! Which govt stuff is really serviced with the cost they quote!


Truly, the money is a national cake: you only need a big knife to cut.

Government needs to connect the North with the South by Rail

When they built rail in area that's not lucrative what do you expect It will soon collapse, just like airport outside Lagos and Abuja Southeast and Southsouth are more lucrative than any other region in Nigeria same with commercial transportation by road, how may of them are ready to spend money on good commercial buses and planes, that is why Nigeria can't move forward doing the same thing from decades expecting different results, they don't even make enough money to service the debt used in constructing the railway lines not to talk of profit

I said it Weeks back. I didn't economic analysis of those trains and most of Buhari projects... I called them failed projects that are just feel good projects

I went on to show why it's makes no economic sense to use borrowed money to build things like this... I even compared them to cocoa house Ibadan... Beautiful projects to show wealth but have zero economic sustainability

Again I would warn if tinubu should borrow to build infrastructure Nigeria is finished

"Borrow only to provide access to credit for import substitution and export oriented businesses " That's the only way.... That's the only solution

They said they're building infrastructure. When Obi said infrastructure is not what develops the economy but small and medium scale enterprises....clowns were mocking him

Tinubu: We should remove subsidy on this rail too

Lie on us we're your mouka foam

Just wow

Kukuma give us Dept certificate as them they born us make we know the real mission nah

May this Railway Debt Servicing favor me and my family.

I wonder how and what year they will pay back the Chinese railway loan?When the British could not recoup their money in railway investment when they left in 1960

For train I never see enter before. Lubbish

Lol

https://www.youtube.com/watch?v=dymEnxWYTcg

ENJOY THE SHORT STORY

Ashuwajus mandate shall favour me & my family insha Allah!

The earlier we realize that Nigeria government cannot manage elephant projects the better for us. Nigeria government should focus on building roads and providing security while they go into partnership with private investors who can manage this investment. Railway with the huge amount of money used in building it will collapse. Talk about privatization, those politicians will still hijack it and will never work on it

It was stated at a time that the money spent on fuel is more than revenue

I'm glad Nigeria is paying the loan Buhari borrowed from China to build railways in some parts of the country. China is no Paris Club; instead of forgiving your debt, they seize your national assets.

We will take the subsidy savings to build infrastructure. Na the infrastructure be this o. Revenue can’t even service the loans taken

Now we'll be using the funds from fuel subsidy removal to be servicing loans in form of railway debt and other debts...

Tinubu is upgrading this scam thing ooo, buhari pro max

Infrastructure that can't generate something substantial to pay loan borrowed for it's development is quite mind boggling