NRC’s GDP contribution falls to -2.8% amid prepare incidents

The Nigeria Railway Company’s contribution to the nation’s Gross Home Product fell sharply to -2.835 per cent within the fourth quarter of 2025, a distinction to the 42.576 per cent progress recorded in the identical interval of 2024.

Figures from the This autumn 2025 GDP breakdown present that Rail Transport and Pipelines recorded -2.835 per cent progress in This autumn 2025, a pointy drop from 42.576 per cent recorded in This autumn 2024.

Regardless of the drop in rail efficiency, the general Transportation and Storage sector grew 21.254 per cent in This autumn 2025, in contrast with 13.209 per cent in This autumn 2024, largely pushed by sturdy progress in street, air, and water transport.

The air transport sector made a powerful comeback, rising 15.17 per cent progress within the fourth quarter of 2025 after recording a -2.31 per cent decline in the identical interval of 2024.

Street transport, Nigeria’s major technique of shifting individuals and items, additionally grew quicker, leaping to 23.86 per cent from 16.84 per cent the earlier yr.

Water transport continued to enhance, rising 16.09 per cent in This autumn 2025, up from 8.97 per cent in 2024, displaying extra individuals and companies are turning to rivers and waterways to keep away from crowded roads.

The drop in rail efficiency comes amid a sequence of derailments recorded on main rail routes up to now yr.

In August 2025, operations on the Abuja–Kaduna rail hall had been suspended after a passenger prepare derailed shortly after departing Abuja. The incident prompted investigations by security authorities, and a number of other passengers sustained accidents.

The derailment occurred close to Asham Station, forcing the company to briefly halt companies whereas technical groups assessed the observe and coaches concerned within the incident.

Barely months later, one other incident was recorded on the Warri–Itakpe hall. In November 2025, two out of seven coaches of the Warri–Itakpe passenger prepare derailed close to Agbor in Delta State round 7:30 p.m., main to a different suspension of prepare companies on the route.

The railway company stated all passengers on board had been safely evacuated and no casualties had been recorded, whereas preliminary investigations recommended that suspected vandalism of the observe may need contributed to the incident. The derailment occurred solely days after the resumption of companies on the hall following an earlier suspension resulting from technical faults, elevating issues amongst trade stakeholders about infrastructure reliability and upkeep within the rail sector.

Based on stories, Nigeria’s rail community has recorded over 100 derailments over the previous six years, highlighting longstanding security and upkeep challenges inside the system.

Nevertheless, specialists have urged the Federal Authorities to privatise the railway system to drive effectivity and strengthen transportation infrastructure, noting that permitting personal traders to function trains may enhance upkeep, expertise adoption, and ticketing techniques.

The Assistant Common Secretary of the Aviation Spherical Desk, Olumide Ohunayo, supported the transfer, stressing the necessity for technological development and improved service supply within the rail sector.

Ohunayo stated, “I’m completely in help of the privatisation of the rail strains. The expertise and on-line fee and reserving system would take a flip.”

One other stakeholder, aviation skilled Group Capt. John Ojikutu (retd), additionally proposed a mannequin the place the federal government retains regulatory management whereas personal traders function trains.

He stated, “The federal government can solely encourage individuals and develop the setting for it however can not put cash into it. The federal government ought to make the rail strains out there and let individuals put their trains on the observe.”