See the Billions of Naira FG Allocates for Rail Development in 2025 Budget
In the Federal Government’s proposed ₦49.74 trillion budget for 2025, a total of ₦41.49 billion has been set aside for the advancement of rail infrastructure and modernization projects.
The Ministry of Transport is allocated ₦256.73 billion for the fiscal year, with ₦223.80 billion earmarked for capital expenditures. Additionally, ₦30.99 billion is designated for personnel expenses, and ₦1.94 billion for overheads, according to the 2025 Federal Budget Proposal, which outlines plans for significant infrastructure expansion.
Among the key rail projects supported by this funding are the completion of the Abuja-Kaduna railway line, the Lagos-Ibadan rail route, and related works. Specific amounts have been set aside for these projects to ensure their timely completion.
The budget also includes provisions for the rehabilitation of the Itakpe-Ajaokuta rail line, as well as the construction of 12 new stations and the laying of tracks at Agbor’s ancillary railway facilities.
Additionally, funds will be allocated for the design, production, supply, and installation of rolling stock, spare parts, and maintenance equipment to sustain ongoing railway modernization efforts.
Another major initiative covered in the budget is the installation of signal and telecommunication systems along the Itakpe-Ajaokuta-Warri rail line, as well as the implementation of an acoustic sensing security surveillance system for the Abuja (Idu)-Kaduna route and other security enhancements.
The 2025 budget also prioritizes feasibility studies for new standard gauge rail lines, and plans to engage transaction advisors for the privatization of the Abuja-Baro-Itakpe segment and the Kano-Maradi line. These steps, alongside other modernization efforts, are set to enhance Nigeria’s rail network and economic development.
The ₦41.49 billion allocated to rail projects reflects the government’s commitment to bridging gaps in the nation’s rail infrastructure, stimulating economic growth, and improving transportation efficiency across the country.
Key Performance Indicators: Growth in Rail Transport
Recent data from the National Bureau of Statistics (NBS) highlights strong growth in the country’s rail sector. For Q3 2024, passenger numbers increased by 25.05%, with 743,205 passengers compared to 594,348 in Q3 2023. This surge was mirrored by a 13.83% rise in revenue, which reached ₦1.70 billion, up from ₦1.49 billion in the same period last year.
Passenger traffic continued to rise in earlier quarters, with Q1 2024 recording 675,293 passengers and ₦1.42 billion in revenue, while Q2 2024 saw 689,263 passengers and ₦1.69 billion in revenue.
On the freight side, rail cargo volume rose by 39.7%, reaching 96,401 tons in Q3 2024, compared to 69,003 tons in the same period in 2023. This increase in cargo transport revenue surged by 89.6%, totaling ₦412.57 million, though it was lower than the ₦607.31 million recorded in Q1 2024.
However, the pipeline transport sector experienced a decline, with volumes dropping by 43.5% to 7,320 tons, and revenue from pipeline operations falling to ₦51.85 million.
