NRC plans fare hike amid fuel price surge

The Nigerian Railway Corporation (NRC) is contemplating a fare hike for both passenger and freight services as financial pressures mount. This potential increase follows the recent expiration of a 50% discount offered during the Eid-el-Kabir festive season, which was intended to ease transportation burdens for Nigerians.

Sources indicate the NRC is grappling with significantly higher operational expenditures. These include escalating costs for fuel, particularly Automotive Gas Oil (diesel), which reportedly cost the corporation over N1.2 billion in April 2026 alone. Maintenance for locomotives, coaches, tracks, signaling systems, and station facilities also contributes to the rising expenses. The cost of imported spare parts, often purchased with foreign exchange, further exacerbates the financial strain.

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Management is carefully reviewing the situation. The reality is that operational costs have continued to rise while fares have largely remained unchanged. We are left with limited options. Either we review our pricing structure to reflect current realities or scale down operations on some corridors.

An internal source revealed that management is evaluating the situation, noting that operational costs have risen while fares have remained static. The corporation faces a critical choice: adjust its pricing to reflect current economic realities or consider scaling back operations on certain routes. The financial strain is compounded by operational disruptions and increased security expenditures needed to protect railway assets from vandalism and theft, alongside the general impact of inflation on all aspects of the NRC's operations.

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Several factors have affected our projections. Fuel costs have increased substantially. Security-related expenditures have also risen because of the need to protect railway assets against vandalism and theft. We have had to undertake emergency repairs on infrastructure and rolling stock, while inflation continues to impact virtually every aspect of our operations.