The Nigerian Railway Corporation (NRC) on Tuesday ended its 128-year status as Nigeria’s sole railway operator by granting the Lagos State Government a Permanent Operating Licence for the Lagos Rail Mass Transit (LRMT) Red Line, marking a major milestone in the liberalisation of Nigeria’s railway sector.
The licence was formally presented during a signing and handover ceremony in Lagos by the Managing Director of the NRC, Kayode Opeifa, who described the development as a significant step towards aligning Nigeria’s railway industry with global best practices.
Speaking at the event, Opeifa noted that since its establishment in 1898, the NRC had remained the sole developer and operator of railway services across Nigeria. He said the issuance of the permanent licence signals a new era in which multiple operators can function within a regulated rail system while the corporation continues to perform its statutory responsibilities.
“For 128 years, since 1898, the Nigerian Railway Corporation has remained the sole developer and operator of railway services across Nigeria. Today, we formally change that narrative—not by abdicating our statutory roles and responsibilities, but by expanding our horizons and embracing the global best practice of encouraging multiple operators within a regulated rail system,” he said.
The licence, issued through the Lagos Metropolitan Area Transport Authority (LAMATA), formally grants the Lagos State Government the authority to operate services on the shared rail corridor under the existing Track Sharing Agreement while conferring the rights and obligations contained therein. According to Opeifa, it also empowers the state to operate other rail systems in accordance with international best practices.
The development is the latest milestone in a partnership between the NRC and the Lagos State Government that dates back more than a decade. In April 2012, former President Goodluck Ebele Jonathan approved the transfer of two federal rail tracks to the Lagos State Government to facilitate the development of the LRMT Red Line.
Following years of construction and infrastructure development, the Red Line was inaugurated by President Bola Ahmed Tinubu and commenced passenger operations on October 15, 2024. The rail system initially operated under a temporary licence pending operational assessments and regulatory evaluations.
Opeifa explained that the issuance of the permanent licence followed successful technical and operational assessments conducted by railway officials over the past year.
He also highlighted the broader collaboration between both institutions, noting that beyond granting access to the tracks, the NRC supported the project through the training and capacity development of Red Line operational personnel.
The NRC Managing Director commended the Lagos State Government for its sustained investment in public transportation infrastructure, particularly in the rail subsector, describing the state’s commitment as a demonstration of the foresight, capital investment and political will required to build modern rail systems.
According to him, rail transportation remains the backbone of efficient mass transit in major cities around the world and is critical to addressing the mobility challenges associated with rapid urbanisation.
He urged other state governments across the federation to emulate the Lagos model by investing in rail infrastructure and services to complement the Federal Government’s efforts to strengthen the national railway network.
Opeifa said expanded rail transportation would help ease congestion on highways, reduce logistics costs, improve passenger mobility, stimulate industrial and commercial activities, and accelerate national economic growth.
He reaffirmed the NRC’s commitment to fostering productive partnerships that will transform Nigeria’s transport landscape and build an integrated, efficient, safe and sustainable railway system for the benefit of all Nigerians.
The NRC boss also commended the assessment officials whose professionalism and rigorous operational evaluations made the issuance of the permanent licence possible before formally handing over the document to the Lagos State Government.
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