NRC grants Lagos permanent rail operating licence

The Nigerian Railway Corporation (NRC) has formally issued a Permanent Operating Licence to the Lagos State Government, signaling a historic transition in Nigeria's rail transport sector. This development ends the NRC's 128-year exclusive control over the nation's railway operations.

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For 128 years, since 1898, the Nigerian Railway Corporation has remained the sole developer and operator of railway services across Nigeria and, until recently, beyond our borders through rail connections with neighbouring countries.

The licence, administered through the Lagos Metropolitan Area Transport Authority (LAMATA), empowers the Lagos State Government to run rail services on shared corridors under a Track Sharing Agreement. It also opens the door for the state to manage other rail systems.

NRC Managing Director Dr. Kayode Opeifa described the event as a "watershed moment," emphasizing a move from monopoly to a regulated, collaborative system. He noted that while the NRC retains its statutory roles, it is embracing global best practices by allowing multiple operators. This licence deepens the partnership between the NRC and Lagos State, which began in 2012 when former President Goodluck Jonathan approved the transfer of federal rail tracks for the Lagos Rail Mass Transit Red Line.

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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.

The Red Line, which commenced passenger operations in October 2024, was built on the foundation laid by that decision. The NRC had previously granted Lagos State a temporary licence to facilitate the Track Sharing Agreement, monitoring performance before issuing the permanent one. This permanent licence formally grants LAMATA operational rights and obligations on the shared corridor, solidifying a commitment to modernizing rail transport and enhancing urban mobility in Lagos.

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This licence formally grants LAMATA access to operate services on the shared corridor in accordance with the Track Sharing Agreement, while conferring the rights and obligations contained therein.