The Federal Government through the Nigerian Railway Corporation (NRC) has estimated that it generated over N80 million monthly from the Abuja-Kaduna train service in 2018.
The Managing Director, Fidet Okhiria who revealed this yesterday in Abuja explained that the figure was higher than the N16 million generated monthly in 2017.
He also explained that in 2018, the number of train trips also increased from four to eight, adding that 10 more coaches would be deployed on the route.
According to him, these was due tothe high expenses to the purchase of diesel for generators at the train stations.
The MD further explained that in spite of the increase in revenue, the corporation is yet to break even as it still spends over N100 million monthly as running cost.
In his words “When we started, we were earning about N16 million and spending about N56 million, but right now, we can comfortably say we earn over N80 million although we still spend over N100 million, which is closer to breaking even.
“By the time we have more coaches and run more trains, I think the expenses will reduce and more patronage will come in.
“The issue we have now is that we only run passenger trains; we don’t have freight to move from Kaduna to Abuja,’’ he said.
“If we are able to link up with some people to move freight, we will be able to break even because presently, by the time we inject power from the public power supply, I think our expenses will also come down.
“Right now, all our station is still powered by generator 24/7, we buy about 99,000 liters every months to power those generators; so, it eats deep into our expenses.
“But by the time we are able to connect to the public power supply which we hope by this month will be done, the cost of buying diesel will drastically reduce and then, we can break even”.
Okhiria said that the goal is to run hourly train service on the route as Nigerians become more confident in the service.No tags for this post.