Nigerian Railway Revenue Hits N4.1Bln in 2017

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The revenue of the Nigeria Railway Corporation was N4.12 billion in 2017, short by N75 million from the N4.85 billion targeted for the year, its Managing Director, Mr Fidet Okhiria has said.

Okhiria spoke at the National Assembly during the  2018 Budget Defence before the House Committee on Land Transport in Abuja.

Of the 2017 capital budget released, Okhiria noted that 32 per cent was expended while the outstanding 68 percent was still undergoing procurement process.

“I present to you our 2017 budget performance as well as the 2018 budget proposals, as you are aware, the beginning of 2017 was very challenging.

“However, we are delighted that government had made significant release this month. As at today about 76 per cent of the 2017 capital budget was released out of which 32 per cent was expended.

“And the procurement process of the remaining 68 per cent is being concluded. About 99 per cent personnel cost and 15 percent overhead costs were released and were 100 per cent utilised.

“Our targeted Internally Generated Revenue (IGR) for 2017 was N4, 852,955,428 and we were able to realise a total of N4, 129,348,493 which represent about 85 per cent which has helped us to sustain the operations,“ he said.

The managing director said that the corporation target for 2018 is to improve on operational efficiency hence; its 2018 Budget proposal is being guided by the directive of Federal Ministry of Budget and Planning.

Okhiria said NRC was making a capital proposal of N11.43billion with personnel cost of N5.29 billion and an overhead proposal of N105,400.

He said it has projected to realise N4.29 billion in 2018.

“The capital proposal is aimed at continuous maintenance of both narrow and standard gauge lines, procurement of spare parts and rehabilitation of the locomotives coaches and wagons.

“Continue with the signalling and telecom system upgrade while the IGR will be mainly to cover operational expenses. “

Mr Aminu Sani, the Chairman House Committee on Transport, said the committee had earlier asked the NRC team to appear before it in respect to the rail accident.

He said that looking at NRC performance in 2017 and its proposal for 2018; it will be tendered before the appropriation committee to go through it.

NAN quoted Sani as saying  he wondered why NRC was spending money on rehabilitation of the narrow gauge line, when it’s going to be concession.

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