The Nigerian Railway Corporation (NRC) on Friday said its Internally Generated Revenue (IGR) as at Sept. 30 stood at N1.4billion as against N4.4billion projection for 2020.
Managing Director of NRC, Fidelis Okhiria, in a statement said N245million was remitted to the TSA as at Oct.31.
Okhiria said this at the 2021 Budget Defence to the Joint Committee of Land and Marine transport at the National Assembly in Abuja.
He said that the Coronavirus pandemic affected its operations as train services were stopped during its peak, thus affecting the IGR projection for the year.
“The Joint Committee should also note that for the year 2020, the Corporation presented a separate Internally Generated Revenue & Expenditure Budget.
“The sum of N1.4billion has been generated as at Sept. 30 against the projection of N4.4billion 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 Oct. 31.
“The Railway Property Management Company Limited is a wholly owned subsidiary company of Nigerian Railway Corporation. As at Oct. 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.”
He said that the corporation projected N5.3 billion as Internally Generated Revenue for 2021 from its investments.
“For the year 2021, the Corporation plans to generate a total of N5.3billion as 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,” Okhiria said.
According to him, the Corporation’s operational expenditure remains very high because most of the stations along Abuja-Kaduna Railway line are substantially powered by diesel generators.
He said efforts were, however, being made to ensure that alternative sources through Independent Power Plant (IPP) was explored to service all routes beginning with the Standard gauge lines.
The NRC boss noted the initial revenue target of N2 billion was reviewed downwards due to the impact of the COVID-19 Pandemic.
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