The transportation and storage sector’s contribution to the gross domestic product has decreased by 51.01%, which is reflected in the rail transport and pipelines industry.
According to Q2 2022 GDP statistics from the National Bureau of Statistics, the sector’s nominal GDP output plunged from N87.06 million in the first quarter to N42.65 million in the second.
This reduction happened while the sector’s ongoing security and vandalism issues persisted.
The Lagos-Kano and Ajaokuta train services were halted in August by the Nigeria Railway Corporation out of concern for terrorist threats.
Additionally, it was discovered that the NRC had halted operations at the Ajaokuta station on the Warri-Itakpe route as a result of the gunmen’s attack on some passengers.
Further information revealed that the high level of instability in the states of Niger and Kaduna, which are the routes of the train traveling to Kano from Lagos, caused the suspension of the Lagos-Kano train services.
This came after the train between Abuja and Kaduna was bombed in March.
The Port Harcourt-Maiduguri Eastern rail line has been put on hold due to security concerns and vandalism of railroad property, according to Mu’azu Sambo, the minister of transportation.
In a similar vein, the Petroleum and Natural Gas Senior Staff Association of Nigeria had earlier in March expressed concern over the significant losses experienced by oil and gas operators as a result of theft and vandalism.
Festus Osifo, the president of PENGASSAN, claimed that between October 2021 and February 2022, operators vandalized more than 90% of the crude oil they poured into the Trans National Pipeline.
According to Osifo, the issue caused by vandalism is that businesses are obliged to curtail operations when the assets or export pipes are damaged since they are unable to export their output, which results in production losses.
He claims that each operator in the industry suffers a monthly output loss of 10 days on average as a result of vandalism.
