Railways are crucial economic lifelines, offering an efficient means of transporting people and goods while stimulating economic growth. Recognizing this, former President Muhammadu Buhari invested billions in railway infrastructure to revitalize Nigeria’s transport sector. However, the outcomes have fallen far short of expectations.
A closer look at the Abuja Light Rail, Lagos-Ibadan Rail Line, and Kano-Maradi Railway reveals a mix of mismanagement, poor planning, and misplaced priorities, leading to underutilization, financial losses, and security threats. Despite some recent improvements, Nigeria’s rail sector continues to struggle with inefficiencies, rising costs, and declining freight revenue.
Big Promises, Disappointing Outcomes
In July 2018, Buhari inaugurated the $823 million Abuja Light Rail, the first urban light rail system in West Africa. The project was expected to ease congestion, link the city center to the airport, and drive economic development. However, multiple setbacks—including the COVID-19 pandemic, security threats, and vandalism—plunged the railway into a state of disrepair.
A March 2022 terrorist attack in Katari on Abuja-Kaduna main line, Kaduna State, led to a suspension of operations, with passengers killed and abducted. The railway suffered massive vandalism, with criminals stealing copper wiring and communication cables, effectively crippling the system. Even after a nine-month renovation, the railway’s reopening in May 2024 failed to address core challenges.
Similarly, the Lagos-Ibadan rail line, contracted at a staggering cost of $1.5 billion, gulped $2 billion has struggled to justify its investment. Meanwhile, Buhari’s administration controversially approved the $1.9 billion Kano-Maradi rail project, a railway linking Nigeria to Maradi, Niger Republic—a country with minimal trade ties with Nigeria. Critics saw this as a politically motivated project rather than an economically viable one.
The Numbers Tell the Story
Despite a 14 percent increase in passenger revenue in Q3 2024, freight revenue plummeted by 33 percent, dropping from ₦3.3 billion to ₦2.2 billion, according to the National Bureau of Statistics (NBS). The Abuja Light Rail was projected to transport 34,000 passengers daily but barely manages 1,000. This stark contrast highlights the failure to align rail investments with demand.
In contrast, Ethiopia’s Addis Ababa-Djibouti Railway, a $4 billion project completed in 2018, has reduced freight travel times from 50 to 10 hours, transported millions of tons of cargo, and generated $502 million in revenue. This success is attributed to clear planning, private sector involvement, and strategic partnerships—factors lacking in Nigeria’s rail projects.
How Nigeria Can Salvage Its Rail Sector
To unlock the full potential of Nigeria’s railway sector, experts emphasize the need for:
- Amending the Nigeria Railway Corporation (NRC) Act – The government’s monopoly on rail transport stifles private investment. Allowing private-sector participation, as seen in Ethiopia, would inject capital, innovation, and efficiency into the sector.
- Better Maintenance and Security – Past failures to maintain infrastructure have led to rapid deterioration and vandalism. Implementing long-term maintenance strategies and leveraging technology for security is crucial.
- Freight Optimization – Rail transport should be prioritized for moving goods over long distances, reducing the strain on Nigeria’s overburdened road network. Providing incentives for businesses to shift to rail would lower logistics costs and increase revenue.
- Focusing on Demand-Driven Projects – Future rail projects must connect densely populated areas and economic hubs, ensuring infrastructure aligns with actual demand rather than political interests.
- Leveraging Strategic Partnerships – Ethiopia’s success was largely due to private sector partnerships and foreign investment. Nigeria should replicate this model to avoid delays and cost overruns.
- Security and Passenger Confidence – With railway terrorist attacks, kidnappings, and vandalism eroding public trust, investment in security technology and personnel is non-negotiable.
In Summary
Nigeria’s rail sector has immense potential but has been crippled by poor planning, political interference, and financial mismanagement. By learning from countries like Ethiopia, opening the sector to private investment, focusing on freight transport, and ensuring infrastructure aligns with economic needs, the nation can finally turn its railway ambitions into a functional and profitable reality.
