The Federal Government has set aside N41.49 billion for rail infrastructure and modernization projects in the projected N49.74 trillion 2025 budget.
N256.73 billion will be allotted to the Ministry of Transport for the 2025 fiscal year in order to finance its programs. N223.80 billion of this sum is set aside for capital expenditures, of which N1,940,798,202 is allocated for overheads and N30,986,636,237 for staff costs.
The Federal Government’s Final Budget Proposal for 2025, which details plans for significant infrastructure expansion, is where this information was found.
The completion of the Lagos-Ibadan rail line, the Abuja-Kaduna railway project, and related supplementary works are among the major rail-related projects covered by this allocation, with particular money designated for each.
Additionally, the budget covers track-laying at railway ancillary facilities in Agbor, the construction of 12 station structures, and the renovation of the Itakpe-Ajaokuta train line.
Additional information
Additionally, money has been set aside for the design, production, delivery, and installation of rolling stock, maintenance tools, and spare parts for current railway modernisation projects.
Installing a signal and telecommunication system on the Itakpe-Ajaokuta-Warri railway line, as well as an acoustic sensing security surveillance system for the Abuja (Idu)-Kaduna route and other security devices, with separate allocations for each, is another important component.
- The completion of feasibility studies for new standard gauge rail lines, hiring transaction advisors for the concession of the Abuja-Baro-Itakpe segment and the Kano-Maradi line, and funding railway modernisation projects are all given top priority in the 2025 budget, each with a designated budget.
- The N41.49 billion will be used for these projects, demonstrating the FG’s dedication to building a strong rail network to improve connectivity and spur economic expansion.
The FG hopes to fill in the gaps in the nation’s rail system, stimulate economic growth, and increase the effectiveness of all transportation networks across the nation via this investment.
What To Note
The number of passengers and money generated by the Federal Government’s rail projects has increased significantly.
According to the most recent National Bureau of Statistics (NBS) data, the number of passengers increased by 25.05% year over year in Q3 2024, reaching 743,205 from 594,348 in Q3 2023. Revenue increased by 13.83% to N1.70 billion in Q3 2024 from N1.49 billion in the same time the previous year, reflecting this growth.
- Passengers and revenue both rose earlier in the year; in Q1 2024, there were 675,293 passengers and N1.42 billion in revenue; in Q2 2024, there were 689,263 passengers and N1.69 billion in revenue.
- In terms of freight, the volume of rail cargo increased by 39.7% from 69,003 tonnes in Q3 2023 to 96,401 tonnes in Q3 2024.
- Cargo transport revenue increased by 89.6% to N412.57 million, although it was still less than the N607.31 million earned in the first quarter of 2024.
However, pipeline transport showed a dip, with revenue from pipeline operations decreasing to N51.85 million and volumes falling by 43.5% to 7,320 tonnes.
