NRC grants Lagos permanent Rail operating licence

By Kazeem Ugbodaga

The Lagos State Government has become the first sub-national government in Nigeria to receive a permanent railway operating licence, following the approval by the Nigerian Railway Corporation (NRC) to operate rail services under a regulated national framework.

The landmark approval, announced on Tuesday, authorises the Lagos State Government, through the Lagos Metropolitan Area Transport Authority (LAMATA), to operate the Lagos Rail Mass Transit (LRMT) Red Line under the existing Track Sharing Agreement with the NRC.

Beyond the Red Line, the licence empowers Lagos to operate a full complement of passenger and freight rail services, making it the first state in the country to secure such regulatory approval.

Presenting the licence, the Managing Director of the NRC, Dr. Kayode Opeifa, described the development as a watershed moment in Nigeria’s railway industry, signalling the transition from the corporation’s long-standing monopoly to a modern, multi-operator rail system governed by international standards.

He said the permanent licence followed the successful completion of operational assessments after Lagos had initially been granted a temporary operating licence to facilitate implementation of the Track Sharing Agreement.

According to Opeifa, the approval reflects the state’s compliance with the operational, safety and technical requirements for rail services.

“This licence authorises LAMATA to continue operating services on the shared corridor under the Track Sharing Agreement while also positioning Lagos State to operate additional rail systems in line with global best practices,” he said.

The NRC boss recalled that the foundation for the Red Line project was laid in April 2012 when former President Goodluck Jonathan approved the transfer of two federal rail tracks to the Lagos State Government for the development of the urban rail corridor.

He noted that the Red Line commenced commercial passenger operations on October 15, 2024, following its inauguration by President Bola Tinubu, with the NRC providing technical support and personnel training throughout the implementation process.

Opeifa commended the Lagos State Government for its sustained investment in rail infrastructure, rolling stock and integrated transportation, describing the achievement as evidence of visionary leadership, long-term planning and political commitment.

He urged other state governments to emulate Lagos by investing in rail transportation, stressing that an expanded rail network would ease traffic congestion, lower logistics costs, improve passenger mobility and stimulate economic growth.

“Rail transportation remains the backbone of efficient mass transit in major cities around the world. Greater investment in rail infrastructure will complement the Federal Government’s efforts to expand Nigeria’s railway network and accelerate national development,” he said.

The NRC managing director also applauded members of the assessment team whose evaluations culminated in the issuance of the permanent operating licence, reaffirming the corporation’s commitment to building a safe, integrated and sustainable railway system through partnerships with state governments and private operators.

In her response, the Managing Director of LAMATA, Engr. Abimbola Akinajo, described the approval as a historic milestone for Lagos and a testament to years of collaboration between the state government and the NRC.

She praised the corporation for guiding Lagos through the rigorous certification process required to become Nigeria’s first sub-national government licensed to operate the full spectrum of rail services.

“The NRC has demonstrated that its over 100 years of existence is not by chance. We have gained tremendously from the partnership and collaboration, and we will continue to rely on the corporation’s guidance as we expand rail transportation in Lagos,” she said.

Akinajo disclosed that the Lagos State Government had already procured three additional train sets in anticipation of the permanent licence, a move expected to increase daily Red Line services from the current nine trips to 24.

She said the expansion would significantly boost passenger capacity, with the Red Line projected to transport more than 200,000 commuters daily when fully operational.

According to her, the state government remains committed to deepening rail transportation as a key component of its integrated transport strategy under Governor Babajide Sanwo-Olu’s THEMES Plus Agenda, aimed at delivering safer, faster and more efficient mobility for residents.