March 18, (THEWILL) — The contribution of the Nigerian Railway Corporation (NRC) to Nigeria’s Gross Domestic Product fell sharply to -2.835 percent in the fourth quarter of 2025.
It marked a significant reversal from the 42.576 percent growth recorded in the corresponding period of 2024.
Data from the Q4 2025 GDP report shows that the Rail Transport and Pipelines segment contracted by -2.835 percent.
It underscores the impact of persistent operational disruptions and safety concerns on the sector’s performance.
The decline comes despite a broader expansion in the Transportation and Storage sector, which grew by 21.254 percent in Q4 2025, up from 13.209 percent in the same period of 2024.
Growth in the sector was largely driven by strong performances in road, air, and water transport.
Notably, the air transport segment rebounded to 15.17 percent growth in Q4 2025, recovering from a -2.31 percent decline recorded a year earlier
Rail operations, however, were weighed down by safety incidents and service disruptions during the period.
In August 2025, operations on the Abuja–Kaduna corridor were suspended following a train derailment shortly after departure from Abuja.
The incident, which occurred near Asham Station, led to injuries among passengers and forced a temporary shutdown of services as technical assessments were carried out.
Reports indicate that Nigeria’s rail network has recorded over 100 derailments in the past six years, pointing to longstanding issues around maintenance, infrastructure reliability, and operational oversight.
Analysts say the sharp contraction in the rail segment highlights the urgent need to prioritise safety, strengthen maintenance systems, and improve service reliability.
While investments in rail expansion remain ongoing, experts warn that restoring passenger confidence and ensuring operational stability will be critical to reversing the sector’s negative growth trajectory.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
