Abuja-Kaduna Rail Recorded 20M Naira Monthly Deficit In 2018
Despite increased traffic and revenue, the recently opened Abuja-Kaduna rail is still running on a considerably huge deficit.
In 2018, the train route recorded 20-million-naira deficit in its operations.
And according to the managing director of the Nigerian Railway Corporation, NRC Fidet Okhiria, this is despite the 400% increase in revenue recorded by the rail service.
Speaking in Abuja on Tuesday, Okhria said the NRC spends over 100 million naira monthly as running cost.
He attributed the high expenses to the purchase of diesel to power the generators at the train station.
“We are close to breaking even on the Abuja-Kaduna train and we have made progress because of the efforts we made. When we started, we were earning about 16 million naira and spending about 56 million naira,” he said.
“But right now, we can comfortably say we earn over 80 million naira, although we still spend over 100 million naira, 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.”
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