Nigeria’s Railways Accelerate: Passenger and Freight Growth Signal New Era for Regional Mobility

The first quarter of 2025 has brought a wave of optimism to Nigeria’s rail sector, with the latest figures from the National Bureau of Statistics (NBS) revealing a robust resurgence in both passenger and freight activity. This momentum is not only reshaping the country’s transport landscape but also offering valuable insights for Africa’s wider mobility ambitions.

Between January and March 2025, Nigeria’s rail network welcomed 929,553 passengers, a remarkable 37.65% increase compared to the 675,293 recorded during the same period in 2024. This surge underscores a renewed confidence in rail as a safe, reliable, and cost-effective mode of transport, particularly along key corridors such as Abuja–Kaduna, Lagos–Ibadan, and Warri–Itakpe .

The growth in passenger numbers is mirrored by a significant uptick in freight movement. In Q1 2025, the railways transported 181,520 tonnes of cargo, up from 160,650 tonnes in the previous year—a year-on-year growth rate of 12.99%. This performance highlights the expanding role of rail in supporting Nigeria’s logistics and trade supply chains, offering a dependable alternative to road transport and helping to ease congestion on major highways.

Financially, the sector’s resurgence is equally impressive. Passenger service revenue soared to ₦1.95 billion, marking a 37.36% increase from the ₦1.42 billion generated in Q1 2024.

Meanwhile, revenue from goods and cargo transport climbed by 8.19%, reaching ₦657.03 million, up from ₦607.32 million a year earlier. These figures reflect not only higher ridership and cargo volumes but also improved operational efficiency and service delivery by the Nigerian Railway Corporation.

One of the most striking developments is the surge in other receipts—a category that includes station services, onboard sales, and ancillary revenue. In Q1 2025, these receipts jumped to ₦115.68 million, representing a staggering 355.39% increase from ₦25.40 million in the same period last year. This growth points to the successful diversification of revenue streams and the growing commercial potential of Nigeria’s rail stations as hubs for retail and passenger services.

Behind these numbers lies a story of strategic investment and policy focus. The Nigerian government’s commitment to modernising rail infrastructure—through the procurement of new rolling stock, rehabilitation of existing lines, and expansion of service hours—has been instrumental in driving this turnaround. The operational improvements are not only attracting more passengers but also making rail a preferred option for businesses seeking efficient freight solutions.

For Africa’s travel and transport sector, Nigeria’s experience offers several key lessons. First, sustained investment in infrastructure and service quality can rapidly restore public trust and drive up usage. Second, integrating passenger and freight services creates a more resilient and commercially viable rail system. Third, the diversification of revenue—beyond ticket sales—can unlock new business opportunities, from retail partnerships to value-added services at stations.

The implications for regional connectivity are profound. As Nigeria’s railways continue to expand and modernise, they are poised to play a pivotal role in the country’s transport diversification and economic development objectives. The sector’s growth is also likely to stimulate demand for supporting industries, including hospitality, logistics, and tourism, creating a ripple effect across the broader economy.

Looking ahead, the sustained momentum in Nigeria’s rail sector sets a benchmark for other African countries seeking to revitalise their own rail networks. The combination of rising passenger demand, growing freight volumes, and innovative revenue strategies demonstrates that rail can be a cornerstone of sustainable mobility and economic transformation across the continent.

As the Nigerian Railway Corporation continues to build on these gains, the sector’s trajectory will be closely watched by industry stakeholders across Africa. The lessons learned and successes achieved in Nigeria could well inspire a new era of rail-led growth, reshaping how people and goods move across the region for years to come.