As the Nigeria Railway Corporation (NRC) resumes operation on the Abuja-Kaduna train service today, the Federal Government may have lost a whopping N6.6 billion to the 251 days shutdown following the March 28 terrorist attack on the train in Rigasa, Kaduna State.
According to The Guardian conservative estimate of loss is coming a day after the Managing Director of NRC, Fidet Okhiria, said government lost about N113 million to inactivity on the route for over eight months.
While noting that many Nigerians also incurred losses indirectly due to the halt of operations on the route, Okhiria said: “The last time we checked that was between the months of February to August. We have lost about N113 million, using what we were earning between January and March as a working document.
“Although, when the trains were working, there were a lot of other businesses that were going on.
There were people selling on the train; there were people selling around the stations. So, those were indirect benefits and cost that have been lost to the economy. So, we should not only look at the naira and kobo that the railway would have made, but include all other losses by Nigerians.”
The Guardian breakdown of the amount lost to the suspension showed that NRC lost approximately N6.6 billion revenue that could have been raked from ticket sales.
Checks revealed that coaches plying the Abuja-Kaduna rail line have the capacity to carry between 900 and 1,000 passengers per trip. An average economy ticket before the suspension sold between N2,800 and N3,000, while VIP tickets sold for N6,000.
NRC makes a minimum of N2.7 million per trip at N3,000 a ticket and when added to the 124 VIP passengers at N6,000 per ticket, the sum total per trip is about N3.3 million.
The Abuja-Kaduna Train Service (AKTS) operates eight trips daily, which gives about N26.2 million daily. When multiplied by 251 days, it gives about N6.6 billion.
The Nigeria Bureau of Statistics (NBS) also corroborated this finding when it revealed that NRC recorded about 72 per cent loss of revenue in the second quarter of 2022 as their revenue dropped by N1.48 billion in the second quarter (Q2) of 2022.
The data, published on its verified website, said while 953,099 passengers used the railway in the first quarter of 2022, the number of railway passengers recorded in the second quarter was 422,393.
NRC management had often claimed that the losses incurred by the cooperation from the suspension of AKTS was minimal. When it tried to resume operation in May, it was later suspended after families of victims kidnapped on the ill-fated train threatened to disrupt operation until all their loved ones were rescued.
When the new Minister of Transportation, Mu’azu Sambo assumed office, he assured victims’ families that government would not resume operation until all their loved ones in captivity were released.
He also assured that the service would only resume when all necessary security equipment to guarantee passengers’ safety are installed in all the stations and on the rail tracks.
After the release of the remaining victims in October, the Minister again reiterated that the service would only resume when the safety of passengers could be guaranteed.
However, Sambo, during a tour of the Abuja-Kaduna train with newsmen, last week, said with confidence that they are ready for resumption, though he added a caveat that it is only God that could guarantee one’s safety.
He said: “Part of the measures put in place is the ticketing. Security starts from ticketing. You cannot buy a ticket unless you have a valid phone number and the National Identification Number (NIN). If you are a foreigner, there must be means of government-backed identification.”
He said for minors, an adult could only register not more than four minors before using the train.
“Another visible change people will notice is the increase in number of security personnel and some of them will not even be wearing uniform to guarantee the safety of the travelling public. There are other sensitive equipment that we have deployed that I will not be mentioning.
“Also, on every journey the train will be monitored on a screen and the train driver can see up to a particular distance if there is any threat on the tracks, that will enable him match the break long before getting to the perceived threat,” Sambo stated.
POLICE spokesman, CSP Olumuyiwa Adeobi, responding to inquires on the safety measures put in place, said: “The Inspector-General of Police, IGP Usman Alkali Baba, has ordered immediate deployment of armed personnel drawn from the Police Mobile Force, K-9, Force Intelligence Bureau, Explosive Ordnance Unit and Railway Police Command for the commencement of railway services along Abuja/Kaduna rail lines.
“The Nigeria Police Force has been in regular talks with the NRC and other security agencies in preparation for the commencement of operations. The deployment covers major railway stations along the route and operational coaches to provide adequate security for passengers, their property and the entire service in order to prevent any unforeseen incidence.
“The IGP therefore assures the public, especially intending passengers, of adequate protection of lives and property, as all hands are on deck to fortify the railway services along the route and other rail lines across the country.”
The NRC, yesterday, issued an internal memo announcing train fare increment. This is even as some passengers have lamented over the manner of increment, wondering why NRC will jack up train fares without prior notice to users.
According to the internal memo sighted by The Guardian, from November 30, 2022, travelling from Lagos to Ibadan on the 24-seater coaches will now cost N9,000 instead of N6,500; the 56 and 68-seater coaches will now cost N6,500 instead of N5,000, and the 88-seater coaches will attract N3,600 instead of N2,500.
