The Nigerian Railway Corporation (NRC) has presented a permanent operating licence to the Lagos State Government, authorising the Lagos State Government to operate the Lagos Rail Mass Transit (LRMT) Red Line under the existing Track Sharing Agreement.
The presentation makes Lagos State the first sub-national government licensed to operate a full complement of rail services, serving both goods and passenger traffic.
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The licence was formally presented on Tuesday by the Managing Director of the NRC, Kayode Opeifa, during a ceremony attended by officials of the Lagos State Government and the Lagos Metropolitan Area Transport Authority (LAMATA).
Speaking at the event, Mr Opeifa described the development as a landmark in Nigeria’s railway sector, saying it marked a shift from the NRC’s long-standing position as the country’s sole railway operator towards a system that allows multiple operators under a regulated framework.
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According to him, the permanent licence gives LAMATA the authority to continue operating services on the shared rail corridor in line with the Track Sharing Agreement while also empowering the Lagos State Government to operate other rail systems in accordance with international best practices.
Mr Opeifa recalled that in April 2012, former President Goodluck Jonathan approved the transfer of two federal rail tracks to the Lagos State Government for the development of the LRMT Red Line, a decision he said laid the foundation for one of Nigeria’s most significant urban rail projects.
He noted that the Red Line commenced passenger operations on October 15, 2024, following its inauguration by President Bola Tinubu, adding that the NRC had supported the project through personnel training and technical collaboration.
The NRC boss said the corporation had initially issued Lagos State a temporary operating licence to facilitate the implementation of the Track Sharing Agreement pending operational assessments. He said the successful completion of those assessments paved the way for the issuance of the permanent licence.
He commended the Lagos State Government for its investment in rail infrastructure, rolling stock and public transportation, describing the state’s commitment as evidence of strong political will and long-term planning.
Mr Opeifa stressed that rail transportation remains the backbone of efficient mass transit in major cities worldwide and called on other state governments to invest in rail infrastructure to complement the Federal Government’s efforts to expand the country’s railway network.
According to him, increased investment in rail services across the country would help reduce road congestion, lower logistics costs, improve passenger mobility, stimulate economic activities and support national development.
He also praised the assessment officials whose evaluations led to the approval of the permanent operating licence, saying their professionalism ensured that the LRMT Red Line met the required operational standards.
The NRC managing director reaffirmed the corporation’s commitment to working with state governments and other stakeholders to build an integrated, safe and sustainable railway system across Nigeria.
In her remarks, LAMATA’s Managing Director, Abimbola Akinajo, lauded the NRC for taking Lagos State through the rigour needed to attain the position it has today as the first sub-national to operate the full complement of train services in the country.
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She said the NRC, over the years, has proved that its over 100 years of existence is not a fluke, as LAMATA has gained tremendously from its partnership and collaboration.
She said LAMATA would continue to rely on the corporation’s guidance to help the Lagos State Government fulfil the mandate of intermodal transportation, which is a core pillar of the THEMES PLUS Agenda of the Governor Babajide Sanwo-Olu administration.
The LAMATA Chief said the state government has, in anticipation of the licences procured, three more rolling stocks, which would push the Red line services from the nine it currently runs to twenty-four.
Mrs Akinajo said that when fully on stream, the red line would carry more than 200,000 passengers per day, adding that LAMATA would continue to explore ways to deepen rail transportation in the state.
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