NRC projects N5.3bn revenue for 2021

Chinazor Megbolu

The Nigerian Railway Corporation (NRC) has projected a revenue of N5.3 billion in 2021.

The organisation made this known at the weekend during its 2021 budget defence at the National Assembly in Abuja.

The Managing Director, NRC, Mr. Fidets Okhiria, during budget defence to the Joint Committee of Land and Marine transport, noted that the government agency would have more coaches available for its operations deployed to operational routes across the country.

“For the year 2021, the Corporation plans to generate a total of N5.3 billion as Internally Generated Revenue (IGR). More coaches are expected to be deployed to Abuja-Kaduna Train Service, full commercial operation has commenced between Warri-Itakpe and the Lagos-Ibadan Train Service is expected to commence soon,” he said.

Okhiria also noted that the  NRC made a revenue of N1.4 billion as at September 30, 2020, which is way less than it’s projected revenue of N4.4 billion for the same period.

He claimed the decline in meeting up with the targeted revenue was as a result of the effects of the Covid-19 pandemic on the economy.

Okhiria explained to the joint Committee that the NRC remitted N245 Million to the TSA during the same period.

He maintained that the company has acquired more trains for the Lagos-Ibadan railway project set to open soon despite the challenges faced during lockdown.

Okhiria notified the joint House Committee that the pandemic heavily affected operations leading to a 32 per cent decline in performance of the company’s projections for 2020.

He also noted that for the year 2020, the NRC presented a separate IGR and Expenditure Budget.

According to him; “the sum of N1.4 billion has been generated as at September 30 against the projection of N4.4 billion from our core activities, representing 32 per cent performance.

“It is necessary to mention that our train services were stopped and significantly reduced upon resumption due to the impact of Covid-19 Pandemic.

“The construction work within the Lagos corridor including access to Apapa Port also impacted on our ability to provide train services.

“It is important to mention that during the period under review, the Corporation started making payments from its IGR into the Federal Government dedicated TSA as directed by the Federal Executive Council. A total sum of about N245.5million has so far been lodged into the account as at October 31.

“The Railway Property Management Company Limited is a wholly owned subsidiary company of Nigerian Railway Corporation. As at October 31, the Company has generated about N1.4 billion representing 91.5 per cent of N1.5 billion which was the revised approved revenue target for 2020”.

Okhiria further buttressed that 94 per cent of the NRC’s Capital Appropriation for the year 2020 has already been released and has been used for procurements.

“In the year 2021 Budget (Capital and Recurrent) of the Nigerian Railway Corporation for year 2020 budget, the sum of about N18 billion was appropriated for Capital Budget.

“This amount was subsequently revised downwards to N16 billion due to the economic downturn as a result of the Covid-19 pandemic which led to shut down of economic activities as well as the dwindling revenue from crude oil.

“As at today, about N15 billion representing 94 per cent of 2020 Capital Appropriation has been released and procurement process is on-going,” Okhiria said.