Lagos Secures Permanent Licence to Operate Red Line Rail Services

The Lagos State Government has secured a permanent operating licence from the Nigerian Railway Corporation (NRC) for the Lagos Rail Mass Transit (LRMT) Red Line, formally empowering the state to run rail services on the shared federal corridor.

The development represents a landmark shift in Nigeria’s railway administration, ending the NRC’s 128-year monopoly on rail operations and paving the way for licensed sub-national operators within a regulated framework.

At the licence presentation ceremony in Lagos, NRC Managing Director Dr. Kayode Opeifa described the occasion as a watershed moment in the country’s rail transport evolution and a deliberate alignment with global best practices, where multiple operators function under a unified regulatory system. He stressed that the corporation is not relinquishing its statutory mandate, but rather expanding the railway ecosystem through strategic partnerships that will enhance mobility and accelerate economic growth.

“For 128 years, since 1898, the Nigerian Railway Corporation has remained the sole developer and operator of railway services across Nigeria. 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,” Opeifa said.

He explained that the permanent licence was issued after the Lagos State Government successfully fulfilled all operational requirements set by the NRC, having operated under a temporary licence for more than a year. Opeifa recalled that in April 2012, the Federal Government under former President Goodluck Jonathan approved the transfer of two federal railway tracks to Lagos State to facilitate the construction and operation of the Red Line project. Passenger services on the line were launched on 15 October 2024 after its inauguration by President Bola Ahmed Tinubu.

Beyond granting corridor access, the NRC supported the initiative through personnel training and capacity building, a partnership Opeifa characterised as one rooted in mutual trust and shared goals. He noted that the permanent licence, issued through the Lagos Metropolitan Area Transport Authority (LAMATA), confers legal authority to operate services on the shared corridor in line with the Track Sharing Agreement, along with the accompanying rights and obligations.

The licence also enables Lagos State to develop and operate additional rail systems in accordance with international standards. “This achievement is a testament to the mutual trust, cooperation and shared vision that have continued to define our partnership,” Opeifa remarked.

He praised Lagos State for substantial investments in rail infrastructure and rolling stock, saying the commitment positions the state as a model for urban rail development in Nigeria. Modern railway development, he added, demands vision, significant financial outlay and sustained political will, qualities Lagos has consistently demonstrated.

Underscoring the importance of rail as the backbone of efficient mass transit, Opeifa urged other state governments to follow Lagos’s example by investing in rail infrastructure. Such expansion, he noted, would ease pressure on highways, reduce logistics costs, improve passenger mobility, stimulate commerce and industry, and strengthen national economic growth.

“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,” he said.