The Lagos State Government has emerged as the first sub-national government in Nigeria to secure a permanent railway operating licence from the Nigerian Railway Corporation (NRC), marking a significant milestone in the country's rail transportation sector.
The approval, announced on Tuesday, authorises the Lagos Metropolitan Area Transport Authority (LAMATA) to continue operating the Lagos Rail Mass Transit (LRMT) Red Line under the existing Track Sharing Agreement with the NRC.
With the licence, Lagos is also empowered to operate passenger and freight rail services beyond the Red Line, becoming the first state in Nigeria to receive such extensive regulatory approval.
Speaking during the presentation of the licence, NRC Managing Director, Dr. Kayode Opeifa, described the development as a turning point for Nigeria’s railway industry, noting that it signals a transition from a monopoly-driven system to a modern multi-operator framework in line with global standards.
According to him, the permanent licence was granted after Lagos successfully completed the required operational assessments, having earlier operated under a temporary licence to enable implementation of the Track Sharing Agreement.
Opeifa said the approval confirms the state's compliance with the technical, operational and safety standards required for rail operations.
“This licence authorises LAMATA to continue operating services on the shared corridor under the Track Sharing Agreement while also positioning Lagos State to operate additional rail systems in line with global best practices,” he said.
The NRC chief recalled that the Red Line project began in April 2012 when former President Goodluck Jonathan approved the transfer of two federal rail tracks to the Lagos State Government for the development of the urban rail corridor.
He added that the Red Line commenced commercial operations on October 15, 2024, following its inauguration by President Bola Tinubu, with the NRC providing technical support and training throughout the implementation process.
Opeifa commended the Lagos State Government for its sustained investments in rail infrastructure, rolling stock and integrated transportation, describing the achievement as a product of strategic planning and strong political commitment.
He urged other state governments to follow Lagos’ example by investing in rail transport, stressing that expanded rail networks would help reduce traffic congestion, improve mobility, lower logistics costs and boost economic growth.
“Rail transportation remains the backbone of efficient mass transit in major cities around the world. Greater investment in rail infrastructure will complement the Federal Government’s efforts to expand Nigeria’s railway network and accelerate national development,” he said.
The NRC boss also praised members of the assessment team whose evaluations led to the issuance of the permanent licence, reaffirming the corporation’s commitment to promoting a safe, integrated and sustainable railway system through collaboration with states and private operators.
Responding, LAMATA Managing Director, Engr. Abimbola Akinajo, described the approval as a historic achievement for Lagos and a reflection of years of productive collaboration between the state government and the NRC.
She commended the corporation for supporting Lagos through the rigorous certification process required to become the first state licensed to operate a full range of rail services.
“The NRC has demonstrated that its over 100 years of existence is not by chance. We have gained tremendously from the partnership and collaboration, and we will continue to rely on the corporation’s guidance as we expand rail transportation in Lagos,” she said.
Akinajo disclosed that the state had already acquired three additional train sets ahead of the approval, a move expected to increase daily Red Line operations from nine trips to 24.
She added that the expansion would significantly improve passenger capacity, with the Red Line projected to transport more than 200,000 commuters daily when fully operational.
According to her, the Lagos State Government remains committed to expanding rail transportation as a key component of its integrated mobility strategy under Governor Babajide Sanwo-Olu’s THEMES Plus Agenda, aimed at providing safer, faster and more efficient transportation for residents.
