The Nigerian Railway Corporation (NRC) has presented a permanent operating licence to the Lagos State Government for the operation of the Lagos Rail Mass Transit (LRMT) Red Line, marking a major milestone in Nigeria’s railway sector and opening the door for increased participation by sub-national governments in rail operations.

Speaking at the licence presentation ceremony on Tuesday, the Managing Director of the NRC, Kayode Opeifa, described the development as a historic shift from the corporation’s 128-year monopoly in railway operations.

He said that while the NRC would continue to discharge its statutory responsibilities, the corporation was embracing international best practices by encouraging multiple operators within a regulated railway system.

Opeifa noted that the permanent licence was being presented to the Lagos State Government through Lagos Metropolitan Area Transport Authority following the successful implementation of a temporary operating licence issued more than a year ago under a Track Sharing Agreement.

According to him, the licence formally grants LAMATA the right to operate services on the shared rail corridor in line with the agreement, while also empowering the Lagos State Government to operate other rail systems in accordance with global best practices.

He recalled that in April 2012, former President Goodluck Jonathan approved the transfer of two federal rail tracks to the Lagos State Government to facilitate the development of the Red Line project.

The NRC boss said the project began passenger operations on October 15, 2024, following its inauguration by President Bola Tinubu, with the corporation also supporting the project through the training and capacity development of operational personnel.

Opeifa commended the Lagos State Government for its sustained investment in rail infrastructure and rolling stock, describing the Red Line as one of Nigeria’s most transformative urban rail projects.

He said the state’s commitment demonstrated the foresight, capital investment and political will required to develop modern railway infrastructure.

The NRC managing director urged other state governments to invest in rail infrastructure to complement the Federal Government’s efforts at expanding Nigeria’s railway network.

According to him, increased investment in rail transport would ease congestion on highways, reduce logistics costs, improve passenger mobility, stimulate industrial and commercial activities, and accelerate economic growth.

Opeifa reaffirmed the NRC’s commitment to partnerships that would deliver an integrated, efficient, safe and sustainable railway system across the country.

He also commended the assessment officials whose operational evaluations paved the way for the issuance of the permanent operating licence before formally handing over the document to the Lagos State Government.