Lagos Makes History as NRC Grants Permanent Rail Licence to Run Train  Services

Lagos Makes History as NRC Grants Permanent Rail Licence to Run Train  Services

Lagos State has become the first state government in Nigeria to receive a permanent licence to operate railway services after the Nigerian Railway Corporation (NRC) formally authorised it to run both passenger and freight operations under the Lagos Rail Mass Transit (LRMT) Red Line, marking a major milestone in the country’s rail sector reforms.

The NRC on Tuesday presented the permanent operating licence to the Lagos State Government, officially authorising it to operate the Red Line under the existing Track Sharing Agreement.

The approval makes Lagos the first sub-national government in Nigeria to obtain a permanent licence to operate the full complement of railway services, covering both passenger and freight transportation.

Presenting the licence, the Managing Director of the NRC, Dr. Kayode Opeifa, described the development as a watershed moment in the nation’s railway industry, saying it signalled a transition from the era when the NRC was the country’s sole rail operator to a regulated system that accommodates multiple operators.

According to him, the permanent licence empowers the Lagos Metropolitan Area Transport Authority (LAMATA) to continue operating on the shared rail corridor while also giving the Lagos State Government the legal backing to develop and operate other rail systems in line with global best practices.

Opeifa recalled that the journey began in April 2012 when former President Goodluck Jonathan approved the transfer of two federal rail tracks to Lagos State for the development of the LRMT Red Line, a project that has since become one of Nigeria’s most significant urban transport initiatives.
He noted that passenger services on the Red Line commenced on October 15, 2024, following its inauguration by President Bola Tinubu, adding that the NRC played a key role in the project’s success through technical collaboration and personnel training.
The NRC boss explained that Lagos State was initially granted a temporary operating licence to enable the implementation of the Track Sharing Agreement while operational assessments were carried out. He said the successful completion of the evaluation process paved the way for the issuance of the permanent licence.
He commended the Lagos State Government for its sustained investment in rail infrastructure, rolling stock and mass transit, describing the achievement as a product of visionary leadership, political commitment and long-term planning.
Opeifa also urged other state governments to emulate Lagos by investing in rail transportation, stressing that expanding rail infrastructure across the country would ease road congestion, reduce logistics costs, improve passenger mobility, stimulate economic activities and accelerate national development.
He reaffirmed the NRC’s commitment to partnering with state governments and other stakeholders to build an integrated, safe and sustainable railway network across Nigeria.
Responding, LAMATA Managing Director, Engr. Abimbola Akinajo, described the permanent licence as the culmination of years of rigorous assessments and collaboration with the NRC.
She praised the corporation for its technical support throughout the process, saying LAMATA had benefited immensely from the partnership with the over 100-year-old railway institution.
Akinajo said the Lagos State Government had already procured three additional train sets in anticipation of the permanent licence. According to her, the new rolling stock will increase daily Red Line services from the current nine trips to 24.
She added that when fully operational, the Red Line is expected to transport more than 200,000 passengers daily, while reaffirming the state’s commitment to expanding rail transport as part of Governor Babajide Sanwo-Olu’s THEMES+ Agenda and its vision of an integrated intermodal transport system.
Background
The Lagos Rail Mass Transit Red Line is one of the flagship rail projects designed to tackle traffic congestion and improve urban mobility in Africa’s largest city. Built largely on an existing Nigerian Railway Corporation corridor, the line links Agbado to Oyingbo and forms part of Lagos State’s broader strategy to develop a modern, integrated public transportation system.
The permanent operating licence comes as the Federal Government continues to implement railway sector reforms aimed at encouraging greater participation by state governments and private operators. Industry stakeholders believe the move could accelerate investment in rail infrastructure and modernise transportation across the country.
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