NRC grants Lagos permanent licence to operate red line rail

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By Olasunkanmi Akoni

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LAGOS — The Nigerian Railway Corporation (NRC) has formally granted the Lagos State Government a permanent operating licence for the Lagos Rail Mass Transit (LRMT) Red Line, ending its 128-year monopoly as the sole developer and operator of railway services in Nigeria.

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Speaking during the signing of a Memorandum of Understanding (MoU) and licence presentation ceremony in Lagos on Tuesday, the Managing Director of the NRC, Dr. Kayode Opeifa, described the development as a major step towards a regulated multi-operator rail system in line with global best practices.

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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.

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“Today, we formally change that narrative, not by abdicating our statutory responsibilities, but by expanding our horizons,” Opeifa said.

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He recalled that former President Goodluck Jonathan approved the transfer of two federal rail tracks to the Lagos State Government in April 2012 to facilitate the development of the LRMT Red Line.

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The rail line, inaugurated by President Bola Tinubu, commenced passenger operations on October 15, 2024, with morning and evening peak-hour services.

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Opeifa noted that the collaboration between the NRC and Lagos State extended beyond track access to include training and capacity building for Red Line personnel.

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He explained that the corporation had issued Lagos State a temporary operational licence over a year ago to enable implementation of a Track Sharing Agreement, pending a comprehensive operational assessment.

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According to him, Tuesday’s ceremony upgraded the temporary arrangement to a permanent operating licence issued to the Lagos Metropolitan Area Transport Authority (LAMATA).

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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.

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“It also empowers the Lagos State Government to operate other rail systems in line with international best practices,” he said.

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Opeifa commended the administration of Governor Babajide Sanwo-Olu for what he described as its remarkable investment in public transportation, particularly in the rail sector, including the acquisition of rolling stock to meet the state’s growing mobility needs.

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He stressed that rail transport remains the backbone of efficient mass transit globally and is critical to providing safe, reliable and sustainable transportation.

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The NRC boss urged other state governments to invest in rail infrastructure to complement federal efforts, saying nationwide expansion of rail services would reduce pressure on highways, lower logistics costs, stimulate industrial growth and accelerate economic development.

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He also commended members of the operational assessment team for their professionalism, diligence and rigorous evaluations, which paved the way for the issuance of the permanent operating licence.

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