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, marking a historic shift in Nigeria’s railway sector by ending the corporation’s 128-year monopoly as the country’s sole railway developer and operator.
The permanent licence was presented to the Lagos Metropolitan Area Transport Authority (LAMATA) during a Memorandum of Understanding (MoU) and licence presentation ceremony held in Lagos on Tuesday.
Speaking at the event, NRC Managing Director Dr. Kayode Opeifa described the development as a watershed moment in the evolution of Nigeria’s railway industry, saying it signals a transition to a regulated multi-operator rail system in line with international best practices.
“For 128 years, since 1898, the Nigerian Railway Corporation has remained the sole developer and operator of railway services across Nigeria,” Opeifa said. “Today, we formally change that narrative, not by abdicating our statutory responsibilities, but by expanding our horizons and embracing the global best practice of encouraging multiple operators within a regulated rail system.”
According to the NRC, the licence authorises LAMATA to operate services on the shared railway corridor under the existing Track Sharing Agreement, while also conferring the rights and obligations necessary for the operation of the Red Line. The approval is expected to pave the way for Lagos to operate additional rail systems under the established regulatory framework.
Opeifa recalled that the partnership between the Federal Government and Lagos State dates back to April 2012, when then-President Goodluck Jonathan approved the transfer of two federal railway tracks to the state to facilitate the development of the LRMT Red Line. The line was later inaugurated by President Bola Tinubu and commenced passenger operations on October 15, 2024.
Before the permanent approval, the NRC had issued Lagos a temporary operating licence for the Red Line while assessing its operational performance under a Track Sharing Agreement. The successful completion of those assessments led to the issuance of the permanent licence.
Receiving the licence on behalf of the Lagos State Government, LAMATA Managing Director Abimbola Akinajo said the approval would strengthen the state’s rail operations and provide greater flexibility for expanding services. According to LAMATA, the long-term operating and track access agreements will also support future rail projects across Lagos.
The NRC also encouraged other state governments to invest in rail infrastructure, arguing that broader participation in railway development would reduce pressure on road networks, lower logistics costs, improve passenger mobility and stimulate economic growth nationwide.
The issuance of the permanent licence represents a significant milestone in Nigeria’s transportation sector, reflecting ongoing efforts to modernise rail services through collaboration between the Federal Government and state governments while maintaining regulatory oversight.
