The majority of Nigeria’s internal freight occurs by road, with the railway sector playing only a limited role. Nigeria’s rail network has deteriorated in recent decades with wagons, coaches and other related infrastructure being in a state of disrepair.
The annual traffic transported by rail has declined from about 3 million tons of freight and 15 million passengers to less than 50,000 tons of freight and about 1 million passengers. The Nigeria Railway Corporation (NRC) has been a poorly-operated state-owned enterprise which has been a drain on the national treasury and absorbing substantial subsidies from the Federal Government.
At UDBN PLC, we believe that a proper functioning railway network in Nigeria can enhance trade linkages between various major cities in the country and also reduce over-dependence on the country’s existing road network.
The Federal Government of Nigeria in its bid to address the transportation challenges being experienced nationwide, has established a Public Mass Transit Revolving Fund with the objective of increasing the availability of vehicles to the public through eligible transport operators across the country.
