Anxiety as NRC weighs fare increase amid rising operating costs

Concerns are mounting among rail passengers and freight operators following indications that the Nigerian Railway Corporation (NRC) may review fares across its passenger and cargo services as surging operating costs put increasing pressure on its finances.

The development comes just hours after the expiration of the Federal Government’s 50 per cent Eid-el-Kabir train fare discount, a temporary measure introduced to ease transportation costs for Nigerians during the festive season.

Findings indicate that the NRC is grappling with rising expenditure on fuel, maintenance, security, spare parts, personnel and infrastructure management, significantly increasing the cost of running rail services nationwide.

The NRC currently operates three standard-gauge corridors — the Abuja-Kaduna Train Service (AKTS), Lagos-Ibadan Train Service (LITS), and Warri-Itakpe Train Service (WITS) — alongside narrow-gauge mass transit services on the Iddo-Ijoko, Iddo-Kajola and Port Harcourt-Aba routes.

Sources familiar with the corporation’s finances disclosed that the soaring cost of Automotive Gas Oil (diesel), which powers most locomotives and generators, has become one of its biggest challenges.

According to the sources, diesel expenditure alone exceeded ₦1.2 billion in April 2026, accounting for a significant share of operational spending.

In addition to fuel costs, the corporation is contending with escalating maintenance expenses for locomotives, coaches, tracks, signalling systems and station facilities.

The rising cost of imported spare parts, many of which are procured with foreign exchange, has further strained its finances.

A senior management official, who spoke on condition of anonymity because she was not authorised to comment publicly, said the corporation is facing difficult decisions.

“Management is carefully reviewing the situation. Operational costs have continued to rise while fares have largely remained unchanged. We are left with limited options. Either we review our pricing structure to reflect current realities or scale down operations on some corridors,” the official said.

The source added that the corporation’s financial position has deteriorated in recent months due to a combination of rising costs and operational disruptions.

“Fuel prices have increased substantially. Security-related expenditures have also increased due to the need to protect railway assets from vandalism and theft. We have undertaken emergency repairs on infrastructure and rolling stock, while inflation continues to affect virtually every aspect of our operations.”

Industry experts note that the rail sector has also been hit by higher electricity tariffs, insurance premiums, logistics support costs and security deployments required to safeguard critical infrastructure across the country’s rail network.

Recent incidents of vandalism and attacks on railway assets have further increased maintenance and security spending, forcing the corporation to divert resources toward repairs and asset protection.

The Abuja-Kaduna rail corridor, one of the country’s busiest passenger routes, has also experienced rising operating costs driven by heightened security requirements and increased maintenance demands.

Sources said that if approved, any fare adjustment is likely to affect both passenger and freight services, including the Lagos-Ibadan, Abuja-Kaduna and Warri-Itakpe standard-gauge lines, as well as narrow-gauge mass transit operations.

Freight operators have expressed concern that higher rail tariffs could increase logistics costs and ultimately push up the prices of goods transported through the rail network.

Passenger groups have similarly urged the Federal Government to continue supporting rail transportation to keep fares within the reach of ordinary Nigerians.

When contacted, the Managing Director of the Nigerian Railway Corporation, Kayode Opeifa, acknowledged the impact of rising operating costs but assured Nigerians that the corporation remains committed to supporting the Federal Government’s transportation objectives.

He said the NRC would continue to align with President Bola Ahmed Tinubu’s Renewed Hope Agenda by ensuring that rail transportation remains safe, reliable, efficient and affordable.

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“The Federal Government remains committed to making transportation affordable for Nigerians. While we are not oblivious to the realities of rising operational costs, we will continue to explore options that will ensure sustainability without undermining the public interest,” Mr Opeifa said.

Stakeholders say the coming weeks could prove decisive as the corporation seeks to balance financial sustainability with its mandate of providing affordable transportation services to millions of Nigerians.