Lagos Sets Precedent as NRC Issues Permanent Rail Operating Licence
The Lagos State Government has obtained a permanent operating licence from the Nigerian Railway Corporation (NRC), officially granting it the authority to run the Lagos Rail Mass Transit (LRMT) Red Line along the federally owned rail corridor.
This development signals a significant restructuring of Nigeria's railway administration, ending the NRC's exclusive operational control that spanned more than a century, and opening the sector to licensed sub-national entities within a regulated environment.
Speaking at the handover ceremony, NRC Managing Director Dr. Kayode Opeifa called the event a turning point in the evolution of the country's rail transport, noting that it reflects a conscious shift towards international best practice where multiple operators coexist under a single regulatory framework. He clarified that the corporation is not abandoning its statutory duties, but broadening the rail ecosystem through strategic collaborations designed to boost mobility and drive economic progress.
"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," Opeifa stated.
He explained that the permanent licence follows Lagos State's successful compliance with all operational conditions mandated by the NRC, after more than a year of running services under a provisional permit. Opeifa recalled the Federal Government's 2012 approval under former President Goodluck Jonathan, which transferred two federal rail tracks to Lagos State to enable the Red Line's construction and eventual operation. The line began passenger services on 15 October 2024, following its formal inauguration by President Bola Ahmed Tinubu.
Beyond corridor access, the NRC supported the project with training and capacity enhancement for personnel, a relationship Opeifa described as founded on mutual confidence and aligned objectives. He noted that the permanent licence, issued through the Lagos Metropolitan Area Transport Authority (LAMATA), legally empowers the agency to operate services on the shared corridor under the existing Track Sharing Agreement, complete with all associated rights and duties.
The licence also authorises Lagos State to develop and manage other rail systems in line with global standards. "This achievement is a testament to the mutual trust, cooperation and shared vision that have continued to define our partnership," Opeifa said.
He commended the Lagos State Government for its significant capital outlay on rail infrastructure and rolling stock, observing that this commitment has established the state as a benchmark for urban rail development in Nigeria. He underscored that modern railway development demands vision, considerable financial commitment, and enduring political will, traits Lagos has continually demonstrated.
Stressing that rail remains the backbone of efficient mass transit worldwide, the NRC Managing Director urged other state governments to replicate Lagos's investment in rail systems. Broadening rail coverage across the country, he argued, would relieve stress on road networks, cut logistics expenses, improve passenger movement, spur commercial and industrial growth, and reinforce national economic advancement.
"I have consistently advocated that states across the federation should invest in rail infrastructure and services to complement the Federal Government's efforts to strengthen Nigeria's railway network," he added.