NRC grants Lagos permanent licence to operate Red Line Rail

The Nigerian Railway Corporation, NRC, has issued a permanent operating licence to the Lagos State Government for the operation of the Lagos Rail Mass Transit, LRMT, Red Line, a move regarded as a major milestone in Nigeria’s railway sector and a boost for state participation in rail transportation.

Speaking during the presentation ceremony on Tuesday, the Managing Director of the NRC, Kayode Opeifa, described the development as a significant departure from the corporation’s 128-year monopoly over railway operations in the country.

According to him, although the NRC would continue to perform its statutory responsibilities, the corporation was aligning with global best practices by opening the sector to multiple operators within a regulated rail system.

Opeifa explained that the permanent licence was presented to the Lagos State Government through the Lagos Metropolitan Area Transport Authority, LAMATA, after the successful implementation of a temporary operating licence earlier granted under a Track Sharing Agreement.

He said the approval officially authorises LAMATA to operate services along the shared rail corridor in line with the agreement, while also empowering the Lagos State Government to manage additional rail systems in accordance with international standards.

The NRC boss recalled that former President Goodluck Jonathan approved the transfer of two federal rail tracks to the Lagos State Government in April 2012 to support the development of the Red Line rail project.

He added that passenger operations on the rail line commenced on October 15, 2024, following its inauguration by President Bola Tinubu, noting that the NRC also contributed through the training and capacity building of operational personnel.

Opeifa praised the Lagos State Government for its continued investment in rail infrastructure and rolling stock, describing the Red Line as one of the most impactful urban rail initiatives in Nigeria.

According to him, the project reflects the political will, financial commitment and long-term planning required to develop modern railway infrastructure in the country.

He also encouraged other state governments to invest in rail transport infrastructure as a way of complementing the Federal Government’s efforts to expand the national railway network.

The NRC managing director stated that increased rail investment would help reduce pressure on highways, lower transportation and logistics costs, improve passenger mobility, stimulate commercial activities and drive economic growth.

Opeifa reaffirmed the corporation’s commitment to partnerships aimed at building an integrated, efficient, safe and sustainable railway system nationwide.

He also commended assessment officials whose evaluations and operational reviews facilitated the approval of the permanent operating licence before formally presenting the document to the Lagos State Government.