The Nigerian Railway Corporation (NRC) is once again at the centre of national debate, as industry experts and labour leaders weigh its lingering challenges against fresh attempts at its reform, OLUSEGUN KOIKI and BENJAMIN ALADE report.

Over the years, the Nigerian Railway Corporation (NRC) has oscillated between promise and disappointment. More than a decade after Nigeria recommitted itself to rail revitalisation with multi-billion-dollar investments, the NRC remains trapped between ambition and execution.

In recent years, the Federal Government has expanded rail networks and commissioned trains in fulfilment of its promise to make the railways more vibrant and impactful. However, despite these efforts, rail operations continue to expose structural weaknesses in the system.

Despite the huge investment, the Nigerian railways are confronted with persistent operational disruptions, derailments, security concerns and weak revenue performance that have raised questions about their long-term relevance and sustainability.

A major problem is the widespread vandalism of its components, such as bolts, clips, signalling equipment and track materials, which are repeatedly targeted, thereby undermining operational safety and eroding returns on government investment.

Besides, for years, inconsistent and often paltry budgetary allocations limited the NRC’s ability to conduct routine maintenance, procure spare parts, acquire rolling stock or modernise its ageing infrastructure, a situation that led to the accelerated deterioration of its existing rail network.

However, despite an estimated $4 billion spent by the immediate past government on railway development, NRC’s revenue generation has remained low in relation to the scale of investment.This imbalance has continued to fuel public discussion about the efficiency, productivity and strategic direction of Nigeria’s rail sector.

When President Bola Tinubu assumed office in 2023, he pledged to confront long-standing challenges across Nigeria’s transport sector – rail, road, maritime and aviation under his Renewed Hope Agenda.

Tinubu’s government, within the framework, identified rail development as critical to economic growth, national integration and cargo movement.

In January 2025, the Federal Government appointed Dr Kayode Opeifa as the Managing Director of the NRC, tasking him with improving rail operations and significantly boosting Internally Generated Revenue (IGR).

Prior to his appointment, Opeifa was the Federal Capital Territory (FCT) Mandate Secretary for Transportation and also a member of the immediate NRC Governing Board, which indicated that he was coming to a familiar terrain.

In his acceptance speech, Opeifa promised to represent and be the face of the vision of the government as summarised in the Renewed Hope Agenda of Mr President, and ensure that the NRC adequately fulfils its responsibility to the Nigerian people.

He also assured that as the new chief executive officer of the railways, he would add value to an existing vision by ensuring the NRC adequately fulfilled its responsibility to the Nigerian people under the Renewed Hope Agenda programmes of the president. Besides, he vowed to work in harmony with all staff of the NRC to deepen operations of the national rail system for the socio-economic development of the country and improve their welfare package, which he said was critical to the sustainability of the sector.

In his commitment, he also promised to prioritise the security of lives and property, work with the supervising ministry, the Ministry of Transportation, and the entire national security apparatus to ensure the nation’s resources, operations, infrastructure and customers were safe and secured, while also modernising and expanding the rail infrastructure.

He said: “Let me state clearly that today, as we gather here, I am reminded of the critical role the Nigerian Railway Corporation plays in driving economic growth, promoting national integration, and improving the lives of our citizens. We will work together tirelessly to ensure the organisation achieves its mandate and exceeds expectations.

“Our collective mission would be one of efficiency, safety, and customer satisfaction driven by passion for excellence. We will prioritise the completion of ongoing projects, modernise our infrastructure, and expand our services to meet the growing demands of our population. This mission will be tailored towards a robust transformation of the rail sector in Nigeria into a world-class, efficient, and safe mode of transportation.

“This mission is an integral part of the Renewed Hope Agenda of the president and the 25-year Strategic Rail Modernisation Plan, which aims to create an enviable rail transport network that connects every state and major cities in Nigeria.”

One year into Opeifa’s tenure…
One year into Opeifa’s tenure, experts say the NRC’s performance reflects a mix of modest progress and persistent challenges. Industry players noted that operational disruptions have limited the railways’ overall economic impact, especially in passenger and freight haulage, but also acknowledged efforts by the new management to sustain operations under difficult conditions.

According to experts, the corporation recorded improved IGR during most of 2025, but this was later overshadowed by a drop in revenue due to reductions in the running of some corridors due to challenges in the system. For instance, on key corridors such as Abuja-Kaduna and Warri-Itakpe, train frequencies have dropped significantly due to equipment constraints.

Industry experts acknowledged that this challenge was beyond the immediate control of management, but insisted that stronger advocacy and stakeholders’ engagement were required to resolve it.

Speaking on Opeifa one year in office, the President, Nigeria Union of Railway Workers (NUR), Comrade Innocent Ajiji, in an interview with The Guardian, described his performance as people-focused, reform-driven and largely impressive despite structural constraints.

According to him, Opeifa’s leadership had brought renewed motivation to railway workers, improved labour relations and achieved modest gains in revenue, but said there was still room for development.

He emphasised that since assuming office, Opeifa had personally visited railway locations across the country, holding face-to-face interactions with staff to understand their challenges and take action.

He said: “Since he assumed office about a year ago, he has improved the relationship between management and workers, especially in terms of welfare. He has a very good human relationship with workers.”

Ajiji cited the prompt response to rail incidents in Abuja and on the Warri–Itakpe corridor as examples of the helmsman’s hands-on leadership, noting that Opeifa stayed on-site during repair works, ensured workers’ allowances were paid instantly and significantly increased their daily field allowances.

On financial performance, according to Ajiji, NRC’s IGR for most parts of 2025 improved by about 30 to 40 per cent, but regretted that recent operational setbacks caused by equipment shortages led to a drop of revenue.

Ajiji, however, mentioned the lack of locomotives, coaches, wagons and spare parts as some of the challenges confronting the corporation at the moment, but said these factors were outside the control of the management.

“The man’s hands are tied. He may want to run more trains, but the tools are not there. Provision of locomotives and equipment is the responsibility of the Federal Government,” Ajiji added.

The NUR President expressed optimism that with adequate government support, rail operations could witness a major turnaround. He called on the Federal government to align support for the railway sector with the Renewed Hope Agenda, noting that a well-equipped and motivated NRC would be capable of generating sufficient revenue to improve workers’ welfare and reduce dependence on government subvention.

Also, Professor of Transport Planning and Policy at Lagos State University, Samuel Odewumi, expressed that the current phase of NRC management was one of foundation laying rather than instant transformation.He expressed that the renewed focus on safety, operational order and stakeholder engagement was a necessary first step, even if tangible gains remained limited.

Odewumi who is also the Acting Vice-Chancellor of the University of Uyo, Akwa Ibom State, noted that for an industry long plagued by safety concerns and public scepticism, the renewed emphasis on the integrity of rail infrastructure and safety measures had been significant in recent times.

He said: “For a sector that has perennially battled safety fears, the increased focus on rail integrity and contingent safety measures has contributed to restoring passenger confidence, especially along critical freight corridors where standard-gauge operations dominate.”

Despite the modest gains, the transport expert acknowledged that the NRC continued to face deep-rooted challenges. He listed budgetary constraints, ageing infrastructure, occasional derailments and low freight penetration as some of the persistent challenges that still threaten the pace of reform.

Odewumi pointed out that the coming year would be critical for the NRC leadership, urging the management to adopt a stronger push against rail track theft, ticketing racketeering and ensured more visible expansion across the network.

Rail transport analyst Segun Esan, in his comment, noted that the current emphasis on passenger services, though socially beneficial, was economically limiting.

According to him, passenger trains help public perception, but, financially, freight is more rewarding. Esan added that effective railway management required constant physical presence across the network. He also advised the NRC boss to focus attention on core technical areas like track rehabilitation, rolling stock maintenance and freight operations.

According to him, Nigeria’s narrow-gauge network, spanning over 3,500 kilometres, was the most extensive yet most neglected rail asset in the country, especially when compared to the limited coverage of existing standard-gauge lines. He further canvassed for reviving freight services along Lagos-Kaduna and Kano corridors, noting that this could significantly reposition NRC financially, provided the current narrow-gauge system was properly rehabilitated.