FG allocates N41.49 billion for rail tasks in 2025 finances 

The Federal Authorities, within the N49.74 trillion proposed 2025 finances, has allotted N41.49 billion particularly for rail infrastructure and modernization tasks.

For the 2025 fiscal yr, the Ministry of Transport will obtain a complete allocation of N256.73 billion to assist its initiatives. Of this quantity, N223.80 billion is earmarked for capital expenditure, with N30,986,636,237 designated for personnel prices and N1,940,798,202 for overheads.

This data was obtained from the 2025 copy of the Federal Authorities’s Ultimate Price range Proposal, which outlines plans for intensive infrastructure growth.

Key rail-related tasks beneath this allocation embrace the completion of the Abuja-Kaduna railway undertaking, the Lagos-Ibadan rail line, and related extra works, with particular funding indicated for every.

The finances additionally supplies for the rehabilitation of the Itakpe-Ajaokuta rail line, the development of 12 station buildings, and track-laying works at railway ancillary services in Agbor.

Extra insights  

Moreover, funds have been earmarked for the design, manufacture, provide, and set up of rolling inventory, spare components, and upkeep tools for ongoing railway modernization tasks.

One other significant factor is the set up of a sign and telecommunication system on the Itakpe-Ajaokuta-Warri railway line, alongside the set up of an acoustic sensing safety surveillance system for the Abuja (Idu)-Kaduna route and different safety devices, with particular person allocations for every.

• The 2025 finances additionally prioritizes the completion of feasibility research for brand new commonplace gauge rail strains, the engagement of transaction advisors for the concession of the Abuja-Baro-Itakpe phase and the Kano-Maradi line, and the availability for railway modernization tasks, every with particular finances allocations.
• These are the tasks for which the N41.49 billion shall be used, highlighting the FG’s dedication to growing a strong rail community to boost connectivity and financial development.

With this allocation, the FG goals to handle gaps within the nation’s rail infrastructure, enhance financial actions, and enhance the effectivity of transportation methods nationwide.

What you must know  

The Federal Authorities’s rail tasks have proven sturdy development in passenger numbers and income era.

The newest Nationwide Bureau of Statistics (NBS) report signifies a 25.05% improve in passenger numbers year-on-year for Q3 2024, with 743,205 passengers in comparison with 594,348 in Q3 2023. This development was mirrored in income, which reached N1.70 billion in Q3 2024, up 13.83% from N1.49 billion in the identical interval final yr.

• Earlier within the yr, passenger numbers and income additionally elevated, with Q1 2024 seeing 675,293 passengers and N1.42 billion in income, and Q2 2024 recording 689,263 passengers and N1.69 billion in income.
• On the freight aspect, rail cargo quantity grew by 39.7%, reaching 96,401 tons in Q3 2024, up from 69,003 tons in Q3 2023.
• Income from cargo transport surged by 89.6%, totaling N412.57 million, although this was decrease than the N607.31 million recorded in Q1 2024.

Nonetheless, pipeline transport noticed a decline, with volumes falling by 43.5% to 7,320 tons, and income from pipeline operations dropping to N51.85 million.