The Nigeria Railway Corporation’s contribution to the nation’s Gross Domestic Product fell sharply to -2.835 per cent in the fourth quarter of 2025, a contrast to the 42.576 per cent growth recorded in the same period of 2024.
Figures from the Q4 2025 GDP breakdown show that Rail Transport and Pipelines recorded -2.835 per cent growth in Q4 2025, a sharp drop from 42.576 per cent recorded in Q4 2024.
Despite the drop in rail performance, the overall Transportation and Storage sector grew 21.254 per cent in Q4 2025, compared with 13.209 per cent in Q4 2024, largely driven by strong growth in road, air, and water transport.
The air transport sector made a strong comeback, rising 15.17 per cent growth in the fourth quarter of 2025 after recording a -2.31 per cent decline in the same period of 2024.
Road transport, Nigeria’s main means of moving people and goods, also grew faster, jumping to 23.86 per cent from 16.84 per cent the previous year.
Water transport continued to improve, growing 16.09 per cent in Q4 2025, up from 8.97 per cent in 2024, showing more people and businesses are turning to rivers and waterways to avoid crowded roads.
The drop in rail performance comes amid a series of derailments recorded on major rail routes in the past year.
In August 2025, operations on the Abuja–Kaduna rail corridor were suspended after a passenger train derailed shortly after departing Abuja. The incident prompted investigations by safety authorities, and several passengers sustained injuries.
The derailment occurred near Asham Station, forcing the corporation to temporarily halt services while technical teams assessed the track and coaches involved in the incident.
Barely months later, another incident was recorded on the Warri–Itakpe corridor. In November 2025, two out of seven coaches of the Warri–Itakpe passenger train derailed near Agbor in Delta State around 7:30 p.m., leading to another suspension of train services on the route.
The railway corporation said all passengers on board were safely evacuated and no casualties were recorded, while preliminary investigations suggested that suspected vandalism of the track might have contributed to the incident. The derailment occurred only days after the resumption of services on the corridor following an earlier suspension due to technical faults, raising concerns among industry stakeholders about infrastructure reliability and maintenance in the rail sector.
According to reports, Nigeria’s rail network has recorded over 100 derailments over the past six years, highlighting longstanding safety and maintenance challenges within the system.
However, experts have urged the Federal Government to privatise the railway system to drive efficiency and strengthen transportation infrastructure, noting that allowing private investors to operate trains could improve maintenance, technology adoption, and ticketing systems.
The Assistant General Secretary of the Aviation Round Table, Olumide Ohunayo, supported the move, stressing the need for technological advancement and improved service delivery in the rail sector.
Ohunayo said, “I am totally in support of the privatisation of the rail lines. The technology and online payment and booking system would take a turn.”
Another stakeholder, aviation expert Group Capt. John Ojikutu (retd), also proposed a model where the government retains regulatory control while private investors operate trains.
He said, “The government can only encourage people and develop the environment for it but cannot put money into it. The government should make the rail lines available and let people put their trains on the track.”
