NRC generates N1.4bn IGR, remits N245m to TSA in 2020

NRC generates N1.4bn IGR, remits N245m to TSA in 2020

The Nigerian Railway Corporation (NRC) on Friday said its Internally Generated Revenue (IGR) as at Sept. 30 stood at N1.4 billion; as against the N4.4 billion projection for 2020.

 

Mr Fidets Okhiria, the Managing Director of NRC, in a statement said that the corporation had also remitted N245 million into the Treasury Single Account (TSA) of the Federal Government as at Oct. 31.

 

He said this at the 2021 Budget Defence of NRC before the Joint Committee of Land and Marine Transport of the National Assembly in Abuja.

 

Okhiria said that the Coronavirus (COVID-19) pandemic affected had its operations, as train services were stopped during its peak, thus affecting plans to achieve 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 and Expenditure Budget.

 

“The sum of N1.4 billion has been generated as at Sept.  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 of operations, 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.”

 

Okhiria said that the corporation projected the generation of N5.3 billion as IGR for 2021 from its investments.

 

“For the year 2021, the corporation plans to generate a total of N5.3 billion 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,” he said.

 

The managing director said that 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 that efforts were, however, underway to ensure that alternative sources, through Independent Power Plant (IPP), were explored to service all routes, beginning with the Standard Gauge lines.

 

Okhiria said that the initial revenue target of N2 billion was reviewed downwards, due to the impact of the COVID-19 pandemic.

 

“In 2021, the company has proposed to generate N2 billion, the total proposed Capital Budget of the Nigerian Railway Corporation is N23.8 billion, distributed into 17 budget lines.

 

He said that in the budget, N18 billion was appropriated for capital expenditure.

 

“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 the shutdown 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.

 

“The sum of N7.1 billion was appropriated for year 2020 as total personnel costs for the corporation and as at September 2020, a total of about N6.47 billion has been paid, leaving a balance of about N627 million,” Okhiria added.

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