L-R: Technical Adviser Public Transport Rail, LAMATA, Olasunkanmi Okusaga; MD of LAMATA, Engr. Mrs. Abimbola Akinajo; MD of NRC Dr Kayode Opeifa; and Director of Operations, NRC Mr Akin Osinowo, during the presentation of the licence. Photo: LAMATA
The Nigerian Railway Corporation has formally presented a Permanent Operating Licence to the Lagos State Government, marking a shift in Nigeria’s rail transport sector after 128 years of the corporation being the country’s sole railway operator.
The licence, presented through the Lagos Metropolitan Area Transport Authority, authorises 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.
Speaking during the presentation ceremony, the Managing Director of the NRC, Dr. Kayode Opeifa, described the development as a watershed moment in Nigeria’s railway history, saying it signalled a transition from a monopoly to a more collaborative and regulated railway system.
Opeifa said, “For 128 years, since 1898, the Nigerian Railway Corporation has remained the sole developer and operator of railway services across Nigeria and, until recently, beyond our borders through rail connections with neighbouring countries.
“Today, we formally change that narrative not by abdicating our statutory roles and responsibilities, but by expanding our horizons and embracing the global best practice of encouraging multiple operators within a regulated rail system.”
He said 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.
According to him, the partnership dates back to April 2012 when 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.
He noted that the decision laid the foundation for one of Nigeria’s most ambitious urban rail projects, which commenced passenger operations on October 15, 2024, following its inauguration by President Bola Tinubu.
Opeifa recalled that the NRC had earlier granted Lagos State a temporary operational licence to enable the implementation of the Track Sharing Agreement while the corporation monitored the operational performance of the Red Line.
His words, “I recall that a little over a year ago, the NRC granted the Lagos State Government a temporary operational licence to facilitate the implementation of the Track Sharing Agreement, pending the issuance of a permanent operating licence following satisfactory operational assessment.
“Today, we take another important step in strengthening that partnership by presenting a Permanent Operating Licence to the Lagos State Government through the Lagos Metropolitan Area Transport Authority. 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.”
He added that the licence also empowers the Lagos State Government to operate other rail systems in line with international standards. The NRC MD added that the partnership between both institutions had included the training and capacity development of personnel operating the Red Line, describing it as a demonstration of the benefits of institutional collaboration.
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.
“I sincerely appreciate the Lagos State Government for its confidence in the Nigerian Railway Corporation and for its unwavering commitment to this collaboration.
“The development of modern rail infrastructure requires foresight, substantial capital investment, and sustained political will, all of which Lagos State has consistently demonstrated,” Opeifa stressed.
He also noted that rail transportation remains the backbone of efficient mass transit in major cities around the world, adding that continued investment in the sector would provide safer, more reliable and environmentally sustainable transportation while easing pressure on Nigeria’s congested road network.
He 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.
“I have consistently advocated that states across the Federation should invest in rail infrastructure and services to complement the Federal Government’s efforts to strengthen Nigeria’s railway network. Expanding rail transportation nationwide will ease congestion on our highways, reduce logistics costs, improve passenger mobility, stimulate industrial and commercial activities, and ultimately accelerate national economic growth.
“I wish to appreciate all the assessment officials whose professionalism, diligence and rigorous operational evaluations made today’s issuance of this Permanent Operating Licence possible,” he said.
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.
Akinajo said 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.
She noted that the certification process was exhaustive, saying the state government earned the licence after meeting the corporation’s stringent operational requirements.
“We worked with a very professional and focused NRC team, and they also met a highly efficient team from LAMATA. It is only natural that Lagos would be the first. It wasn’t a walk in the park either; NRC put us through the full process,” Akinajo said.
Describing the approval as a milestone not only for Lagos but for Nigeria’s rail industry, she said the development would encourage greater participation by sub-national governments while creating opportunities to develop the country’s rail workforce.
“For us, this is a win for Lagos and Nigeria because the rail industry is beginning to grow. We have a huge young population, and we must build the capacity to train them. As Lagos has done, other states can come on board and ensure their residents have more transportation options. Our vision is an integrated transport system for Lagos State, and this licence will help us achieve that.”
Akinajo disclosed that LAMATA is targeting a significant expansion of Red Line operations, with plans to increase daily services to 24 by the fourth quarter of 2026 following the delivery of additional rolling stock.
She explained that each of the new train sets would have the capacity to convey at least 2,000 passengers per trip in each direction, a development expected to substantially ease commuter traffic during peak periods and improve service reliability.
The LAMATA boss further revealed that the agency currently operates 94 daily trips on the Blue Line, adding 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.
