The Nigerian Railway Corporation (NRC) has officially granted a permanent operating licence to the Lagos State Government for its Red Line rail service. This achievement marks a historical shift as the NRC moves away from its long-standing 128-year operational monopoly to embrace a model featuring multiple rail operators.
NRC Managing Director Kayode Opeifa noted that this decision aligns Nigeria with international standards for a regulated railway sector. The licence was issued to the Lagos Metropolitan Area Transport Authority (LAMATA) following the successful completion of a temporary pilot phase conducted under a Track Sharing Agreement.
The legal framework for this initiative began in April 2012 when then-President Goodluck Jonathan transferred two federal rail tracks to Lagos to facilitate the Red Line project. Following a formal inauguration by President Bola Tinubu, commercial passenger operations officially launched on October 15, 2024. The NRC supported this transition by training technical staff and assisting with capacity building.
Opeifa lauded the Lagos State Government for its sustained commitment to infrastructure development. He urged other states to pursue similar investments, noting that expanded rail networks are essential for alleviating traffic congestion, lowering logistics costs, and fostering regional economic growth. The NRC remains dedicated to collaborating on safe and efficient railway systems throughout the country.