Business

Train passengers stranded, NRC loses millions as unions strike

Published

5 years ago

November 19, 2021

The three-day warning strike embarked upon by workers of the Nigerian Railway Corporation (NRC) has grounded train services across the country.

Passengers for the Abuja-Kaduna train services; Lagos-Ibadan, among others, were stranded on Thursday as railway unions down tools to press home their demands for improved welfare.

The Nigerian Union of Railway Workers (NUR) and the Senior Staff Association (SSA) had jointly issued a statement saying the warning strike, which commenced yesterday will end on Saturday.

Officials of the unions said the ongoing strike action was to send a warning signal to the right quarters to heed their demands for improved welfare and standard condition of service.

They said their take-home pay was bad and needed an upward review. The unions said failure to address their grievances would be followed by protracted strike action.

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Daily Trust reports that rising insecurity has recently made trains the preferred choice of transportation for many Nigerians especially from Abuja to Kaduna, Lagos to Ibadan, among others.

There are concerns that the corporation would lose millions of naira because of the strike.

How negotiations collapsed

The railway unions and the management of NRC had engaged in a series of meetings to avert the strike without reaching an agreement. Even the last week’s meeting with the Minister of Transportation, Rotimi Amaechi, was deadlocked, it was learnt.

Daily Trust observed that the Abuja-Kaduna train service was grounded as scores of passengers caught unaware were stranded at the Idu Train Station in the FCT. Many of them had to look for alternatives.

“I am not aware of the strike,” said Olayinka Joseph, a passenger. “I just came to the station to travel to Kaduna and discovered the railway staff were not working,” she said.

A Zaria-bound Ibrahim Audu was also frustrated.

“I took a taxi and paid N1, 500 to the train station but all the offices have been locked. It means I will spend another N2, 000 or more to go to the park in Jabi to begin to look for a vehicle to Kaduna,” he said.

Another passenger, Hassan Ismaila, said he would cancel his trip till Sunday when the staff would have resumed. He also said the NRC unions should learn how to publicise their strike well ahead of time so that passengers could be better informed.

“I prefer the Abuja-Kaduna train to cars because of the insecurity along the road,” Halima Ibrahim, who frequents the route, said.

“Honestly, it is too early for the railway workers to join other unions who believe a strike is the only option to press home their demands,” she said.

“Conversely, it means the government is not serious by allowing simple issues to degenerate to self-help. Remember, railway revitalisation is one of the showcase projects of this administration; they should take it seriously,” she said.

In Lagos, the protesting workers on Thursday shut the Mobolaji Johnson Train Station and other train services. The workers sang solidarity songs bearing placards reading, ‘Good salaries bring better results, bad salaries kill morale’; ‘Railway workers’ salaries least under the FMOT – (Federal Ministry of Transport)’, among others.

“Thousands of people who rely on rail transportation would arrive at our places of work very late,” Said Shakiru Ma’aruf.

“The train helps a lot and to a greater extent reduce the pressure on the roads occasioned by traffic gridlock. I am not happy those concerned allowed this to happen,” another passenger, Helen John, said.

General Secretary NUR, Comrade Segun Esan, said, “When you value the whole of the infrastructures, the whole of the assets in train service, starting from the locomotive, the coaches or the locomotive and the wagons, it is clearly over and above N2.5bn and the driver you are asking to drive such equipment is being paid a paltry amount as low and as so unbelievable as N26, 000, N30, 000, N36, 000 as the case may be! It doesn’t augur well.”

Daily Trust reports that the minimum wage in Nigeria is N30,000 and many wondered why NRC workers would be paid below that if the claim by the general secretary is true.

NRC may lose N100m

Meanwhile, the strike action will cost the NRC huge sums in economic losses daily. Checks by our correspondent showed that the NRC might lose over N57 million in the three days the strike action will last on the Abuja-Kaduna train service.

This paper estimated that it may lose up to N30m in the Lagos axis (Lagos-Ibadan and the intra-city train services) and about N13m on the Itakpe-Warri rail service.

The NRC will lose about N19m daily from its almost 5,000 daily passenger traffic on the Abuja-Kaduna corridor except on Wednesdays when it operates limited scheduled services due to maintenance programmes on the locomotives.

The NRC runs 12 coaches on the corridor using two Diesel Multiple Units (DMU) purposely for the express services. It operates up to eight trips on the corridor: four from Abuja and four from Kaduna. The economy coaches carry up to 88 passengers whilst the business class coaches carry up to 56 passengers.

The NRC charges N2, 600 per seat for the economy class (N3, 000 for express service) and N5, 000 for business class.

Cumulatively, it makes between N15m to N19m depending on the passenger traffic.

The in-train food vendors who make over N100, 000 daily would also lose while the about 100 cabs operating at the Idu Station alone could lose N1m daily.

The big losers apart from NRC would be the cab operators in Idu, Kubwa and Rigasa train stations which witness the largest traffic on the corridor.

Small businesses dealing in food vending, POS services, snacks, drinks and other small businesses will be counting losses without succour. Their potential losses could not be exactly established.

For the Lagos axis, the NRC would be losing an estimate of about N10m daily on the Lagos-Ibadan axis due to the strike embarked upon by railway workers.

In Lagos district where the NRC operates the newly launched Lagos-Ibadan standard gauge, the Lagos-Ogun intercity train services as well as the evacuation of cargoes from the port, the corporation is estimated to be losing over N10m daily. This is calculated on the estimated number of passengers on the services.

For the Lagos-Ibadan Train Service (LITS), about 1,000 passengers use the train daily and at an average of N2, 600 per passenger on the Economy Coach, NRC would lose N2.6m. For the intercity from Lagos to Ijoko, NRC conveys over 10,000 daily and at an N460 flat rate, it loses N5m daily.

We’re engaging unions – NRC

The Manager of the Abuja-Kaduna Train Service, Mr Pascal Nnorli, said the strike has crippled all train activities adding that the NRC management will further engage the unions to resolve the matter.

He also indicated that the matter might also involve the National Salaries, Wages and Income Commission, which has the constitutional power to review the work conditions of federal government workers.

Daily Trust

Related Topics:Featured millions NRC passengers stranded strike train unions

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Abuja Roars to Life as Jetour X50 Headlines Three-Day Motoring Experience

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September 8, 2026

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Abuja Roars to Life as Jetour X50 Headlines Three-Day Motoring Experience

Abuja is gearing up for a major motoring spectacle as Jetour Nigeria brings its fast-growing brand experience to the Federal Capital Territory, with the stylish Jetour X50 set to take centre stage in a three-day showcase of performance, technology and automotive innovation.

Scheduled for September 22 to 24, 2026, the Jetour Experience Abuja will move beyond the conventional vehicle exhibition, giving motorists and prospective buyers the opportunity to test-drive the X50, interact with automotive specialists and experience a range of entertainment and interactive activities.

The Abuja activation follows the strong reception recorded during Jetour Nigeria’s recent Lagos experience and forms part of the automaker’s strategy to deepen customer engagement while expanding its footprint across Nigeria.

Backed by an expanding authorised dealer network comprising Elizade Nigeria Limited, Mandilas Autos, Germaine Auto Centre, Kojo Motors, R.T. Briscoe, Tab Autos and New Era AutoVehicle Services, Jetour is also strengthening access to vehicle sales, after-sales support, genuine spare parts and certified technical services nationwide.

At the heart of the Abuja experience will be the Jetour X50, a compact SUV designed to combine contemporary styling, performance and a technology-rich driving environment.

Powered by a 1.5-litre turbocharged engine paired with a dual-clutch transmission, the X50 has positioned itself as a strong contender in Nigeria’s competitive compact SUV segment.

Jetour has equipped the model with a range of premium features, including a 360-degree camera, Blind Spot Detection, 10.5-inch infotainment system with Apple CarPlay and Android Auto, wireless charging and leather upholstery.

The combination of technology, comfort and performance is part of Jetour’s strategy of offering premium motoring features at competitive price points.

The Abuja event also highlights Jetour’s aggressive expansion strategy in Nigeria, following the brand’s recognition with industry accolades including Fastest Growing Auto Brand and Auto Brand of the Year.

With its expanding dealer network providing nationwide sales and after-sales support, Jetour is seeking to deepen customer engagement while making its vehicles and ownership services more accessible to motorists across the country.

As Abuja prepares to welcome the Jetour Experience, the three-day activation is expected to provide motorists with an opportunity to see, feel and drive the X50 while experiencing first-hand what is driving the brand’s growing appeal in Nigeria.

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After two decades, Tinubu approves Cabotage fund for Nigerian shipowners

Published

2 days ago

September 7, 2026

Trends Admin

Minister of Marine and Blue Economy, Adegboyega Oyetola

After two decades, Tinubu approves Cabotage fund for Nigerian shipowners

President Bola Tinubu has approved the disbursement of the Cabotage Vessel Financing Fund (CVFF) to qualified Nigerian shipowners, more than 20 years after the fund was established to promote indigenous participation in the country’s maritime industry.

The approval, announced on Sunday, September 6, 2026, is expected to end years of uncertainty surrounding the CVFF and provide Nigerian shipowners with access to long-term financing for the acquisition of vessels and expansion of their operations.

The Minister of Marine and Blue Economy, Adegboyega Oyetola, disclosed the development in a statement issued by his Special Adviser, Bolaji Akinola.

Oyetola directed the Nigerian Maritime Administration and Safety Agency (NIMASA) and the 12 approved Primary Lending Institutions (PLIs) to fast-track the processing and disbursement of the fund to eligible applicants.

According to the minister, the move is designed to unlock investment in Nigeria’s maritime sector, increase indigenous ship ownership, strengthen the country’s participation in coastal and offshore shipping and create thousands of employment opportunities.

NIMASA has so far received 92 applications from prospective beneficiaries seeking financing under the CVFF programme. Twenty applications have already been forwarded to the approved lending institutions, while one has been reviewed and sent forward for final approval.

The development marks the latest stage in the Federal Government’s efforts to transform the CVFF from a long-standing pool of accumulated funds into an operational financing facility for Nigeria’s indigenous shipping industry.

The CVFF was created under the Coastal and Inland Shipping (Cabotage) Act to provide financial support to qualified Nigerian operators for the acquisition of vessels and development of domestic shipping capacity.

The facility is particularly important because Nigeria’s maritime sector has historically relied heavily on foreign-owned vessels for several coastal and offshore operations, limiting the amount of revenue retained by indigenous operators.

Through the CVFF, the government seeks to enable qualified Nigerian shipowners to acquire modern vessels, expand their fleets and compete more effectively for contracts within the domestic maritime market.

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The fund is structured to provide long-term financing at a relatively low interest rate, with the current framework designed to make vessel acquisition more accessible to indigenous operators.

NIMASA had previously disclosed that the financing arrangement would provide for a single-digit interest rate, a two-year moratorium and an eight-year repayment period.

Under the framework, NIMASA is expected to provide 50 per cent of the financing, while the participating lending institutions would contribute 35 per cent and beneficiaries would provide the remaining 15 per cent as equity.

The number of participating Primary Lending Institutions was increased from five to 12 to widen access to the facility, improve competition among lenders and reduce delays associated with loan processing.

The expansion is also expected to give applicants more options when seeking financing and strengthen the financial oversight of the programme.

Oyetola had earlier directed NIMASA in April 2025 to begin the process of operationalising the Cabotage Vessel Financing Fund, reviving efforts to disburse the facility after years of administrative stagnation.

The process received another boost in January 2026 with the launch of the CVFF Application Portal in Lagos.

The portal was designed to provide eligible shipowners with a more transparent and structured process for submitting applications and tracking their financing requests.

The latest presidential approval therefore builds on several reforms introduced by the Ministry of Marine and Blue Economy and NIMASA over the past two years.

The CVFF has a long history of delayed disbursement.

In December 2019, the Federal Government announced that then-President Muhammadu Buhari had approved the release of the fund to indigenous shipowners, with the accumulated amount at the time reportedly estimated at N44.64 billion.

Despite the announcement, the fund did not translate into sustained financing for Nigerian shipowners.

In 2023, the House of Representatives intervened over concerns surrounding the management and proposed disbursement of the fund.

The House investigated the amount accumulated under the scheme, the proposed financing arrangements and the process for selecting beneficiaries.

Following the investigation, lawmakers approved the disbursement of an estimated $360 million to qualified Nigerian shipowners.

However, the implementation of the disbursement continued to face delays.

By April 2025, NIMASA estimated the value of the fund at about $700 million and announced plans to commence disbursement under a revised financing structure.

The latest approval by President Tinubu is therefore another significant attempt to move the fund from years of accumulated resources and administrative delays to actual financing for indigenous operators.

The Federal Government expects the programme to have an impact beyond vessel ownership.

According to Oyetola, the initiative could generate more than 30,000 direct and indirect jobs across shipyards, marine engineering companies, maritime logistics firms and other businesses connected to the maritime value chain.

Greater indigenous ownership of vessels could also stimulate demand for shipbuilding, vessel repairs, marine engineering, maritime insurance, logistics and other specialised services.

The government believes this could help Nigeria retain a larger share of the economic value generated from activities within its territorial waters.

The CVFF disbursement is also coming as Nigeria seeks to improve its international maritime profile.

In August 2026, the United States Coast Guard lifted a 12-year Condition of Entry imposed on Nigerian vessels arriving at US ports.

The restriction, introduced in 2014 over concerns about maritime security standards, had subjected Nigerian vessels to additional requirements when entering US ports.

Its removal is expected to improve the operating environment for vessels trading between Nigeria and the United States, potentially reducing additional compliance costs and improving turnaround times.

The development has added momentum to Nigeria’s efforts to strengthen maritime safety, security and compliance with international standards.

For the Federal Government, strengthening indigenous shipping capacity remains a key component of its broader Blue Economy strategy.

The administration has identified the maritime sector as an area capable of attracting investment, creating jobs, expanding trade and increasing Nigeria’s revenue from its extensive coastal and offshore economic activities.

For Nigerian shipowners, however, the immediate focus will be on whether the latest approval translates into actual access to financing.

With 92 applications already received and 20 forwarded to lending institutions, the next stage will involve detailed assessment, approval and eventual release of funds to successful applicants.

The government’s challenge will be to ensure that the process remains transparent, commercially sustainable and accessible to genuinely qualified Nigerian operators.

After more than two decades of delays, investigations and repeated promises of disbursement, President Tinubu’s latest approval represents a major opportunity to finally make the Cabotage Vessel Financing Fund a functioning source of capital for Nigeria’s indigenous shipping industry.

After two decades, Tinubu approves Cabotage fund for Nigerian shipowners