2026 budget: NRC to spend N10.1bn on train purchase, repairs

Published 4 hours ago
Source: vanguardngr.com
Rail

By Folarin Kehinde, Abuja

The Nigerian Railway Corporation, NRC, is proposing to spend over N10.1 billion on train acquisition and rehabilitation works under its 2026 budget, as the Federal Government targets improved rail services nationwide.

This was contained in details of the budget uploaded on the website of the Budget Office of the Federation.

The budget shows that the NRC received a total allocation of N34.24 billion, with capital expenditure accounting for N11.65 billion of the sum.

Out of this capital vote, N5.97 billion has been set aside specifically for the purchase of trains, while N4.19 billion is allocated for rehabilitation and repairs of existing railway assets.

A breakdown of the repair component shows that N1.95 billion is earmarked for the repairs of railways, N1.89 billion for the repairs of office buildings, and N350 million for the repairs of roads within railway facilities and corridors.

The heavy investment in repairs reflects government concern over the deteriorating state of rail infrastructure, which has affected service reliability, safety and revenue generation.

In addition to rehabilitation works, N420 million has been budgeted for the construction and provision of railways, indicating modest expansion alongside the focus on restoring existing lines to optimal condition.

Other projects captured in the 2026 capital budget include N770 million for the procurement of rail inspection vehicles, N700 million for the procurement of track materials, and N420 million for the construction of a station, platform and canopy at Kilometer 31 on the Itakpa–Aladja rail line.

Despite the capital commitments, the budget also highlights the NRC’s structural challenges, with personnel costs gulping N22.38 billion, representing the largest share of the allocation.

Overhead costs stand at N201.1 million, underscoring limited flexibility outside wage obligations.

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