The Nigerian Railway Corporation has issued a permanent operating licence to the Lagos State Government for the Lagos Rail Mass Transit Red Line, marking a significant step in opening the sector to state participation

The Nigerian Railway Corporation has issued a permanent operating licence to the Lagos State Government for the operation of the Lagos Rail Mass Transit Red Line, a significant milestone that ends the NRC’s 128-year monopoly in the country’s railway sector.

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The Managing Director of the NRC, Kayode Opeifa, presented the licence on Tuesday to the Lagos Metropolitan Area Transport Authority during a ceremony in Lagos. He described the development as a bold alignment with global best practices that allows multiple operators within a regulated framework.

Opeifa explained that the permanent licence follows the successful implementation of a temporary operating licence granted under a Track Sharing Agreement. It authorises LAMATA to operate services along the shared corridor while empowering the state to manage additional rail systems to international standards.

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

Passenger services began on 15 October 2024 after inauguration by President Bola Tinubu, with the NRC providing training and capacity building support.

The NRC boss commended the Lagos State Government for its substantial investment in infrastructure and rolling stock, describing the Red Line as one of the most impactful urban rail initiatives in Nigeria.

He encouraged other states to invest in rail transport to complement federal efforts.

Such investments, Opeifa noted, would reduce pressure on highways, lower logistics costs, improve mobility, stimulate commerce and drive broader economic growth. He reaffirmed the NRC’s commitment to collaborative partnerships for a safe, efficient and sustainable national railway system.

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The issuance of the permanent licence is expected to strengthen multi-level governance in Nigeria’s transport sector and accelerate the expansion of modern rail services in major cities.