Nigerian Regulatory Commission awards Lagos a long-term permit to run railway services

The Nigerian Railway Corporation has formally presented a Permanent Operating Licence to the Lagos State Government, marking a significant shift in the country's rail transport sector after 128 years of being the sole railway operator.

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This development allows the Lagos State Government to operate rail services on the shared corridor under the Track Sharing Agreement and paves the way for the state to operate other rail systems, as stated in the licence presented through the Lagos Metropolitan Area Transport Authority.

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Managing Director of the NRC, Dr. Kayode Opeifa, described the occasion as a watershed moment in Nigeria's railway history, signifying a transition from a monopoly to a more collaborative and regulated railway system.

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Opeifa noted that for 128 years, since 1898, the Nigerian Railway Corporation has been the sole developer and operator of railway services across Nigeria, and until recently, beyond its borders through rail connections with neighbouring countries.

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He stated that the issuance of the permanent licence represents another milestone in the long-standing partnership between the NRC and the Lagos State Government, which has focused on modernising rail transportation and improving urban mobility, dating back to April 2012.

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In April 2012, former President Goodluck Jonathan approved the transfer of two federal rail tracks to the Lagos State Government to facilitate the development of the Lagos Rail Mass Transit Red Line, laying the foundation for one of Nigeria's most ambitious urban rail projects.

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The project commenced passenger operations on October 15, 2024, following its inauguration by President Bola Tinubu, and the NRC had earlier granted Lagos State a temporary operational licence to enable the implementation of the Track Sharing Agreement.

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Opeifa recalled that the temporary licence was granted to facilitate the implementation of the Track Sharing Agreement, pending the issuance of a permanent operating licence following satisfactory operational assessment, which has now been presented to the Lagos State Government through the Lagos Metropolitan Area Transport Authority.

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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, and also empowers the Lagos State Government to operate other rail systems in line with international standards.

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The partnership between the NRC and the Lagos State Government has included the training and capacity development of personnel operating the Red Line, demonstrating the benefits of institutional collaboration, according to Opeifa.

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He commended the Lagos State Government for its sustained investment in public transportation, particularly in the rail subsector, noting that the acquisition of rolling stock and continued infrastructure development reflected strong political will and long-term planning.

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Opeifa appreciated the Lagos State Government for its confidence in the Nigerian Railway Corporation and for its unwavering commitment to the collaboration, stating that the development of modern rail infrastructure requires foresight, substantial capital investment, and sustained political will.

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He noted that rail transportation remains the backbone of efficient mass transit in major cities around the world, and continued investment in the sector would provide safer, more reliable, and environmentally sustainable transportation while easing pressure on Nigeria's congested road network.

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Opeifa urged other state governments to emulate Lagos by investing in railway infrastructure and services to complement the Federal Government's efforts to revitalise the nation's rail system, which would ease congestion on highways, reduce logistics costs, and stimulate industrial and commercial activities.

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The Managing Director of the Lagos Metropolitan Area Transport Authority, Mrs. Abimbola Akinajo, described the issuance of the permanent operating licence as the culmination of years of rigorous regulatory assessment and close collaboration with the NRC.

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Akinajo stated that the approval would enable LAMATA to maximise available operational windows on the Lagos Rail Mass Transit Red Line corridor, paving the way for more frequent train services and increased passenger capacity, after meeting the corporation's stringent operational requirements.

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She noted that the certification process was exhaustive, and the state government earned the licence after working with a professional and focused NRC team, adding that it was a milestone not only for Lagos but for Nigeria's rail industry.

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Akinajo said the development would encourage greater participation by sub-national governments while creating opportunities to develop the country's rail workforce, and disclosed that LAMATA is targeting a significant expansion of Red Line operations.

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LAMATA plans to increase daily services to 24 by the fourth quarter of 2026, following the delivery of additional rolling stock, with each new train set having the capacity to convey at least 2,000 passengers per trip in each direction.

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The agency currently operates 94 daily trips on the Blue Line, and Akinajo revealed that it would continue to work closely with the NRC to expand rail services and provide faster, safer, and more reliable transportation for millions of Lagos residents.