Rising Costs Push NRC Toward Fare Review
The Nigerian Railway Corporation (NRC) is considering an upward review of passenger and freight tariffs as rising operational costs continue to strain its finances.
The proposed adjustment comes shortly after the Federal Government’s 50 per cent Eid-el-Kabir train fare discount expired. Authorities introduced the temporary measure to ease transportation costs during the festive period.
Industry sources said the corporation now faces growing expenses across key operational areas. These include fuel, maintenance, personnel, security, spare parts, and infrastructure management.
Consequently, officials warned that the current pricing structure may no longer support sustainable operations.
Diesel Expenses Increase Financial Pressure
The NRC currently operates three standard gauge routes. These include the Abuja-Kaduna Train Service, Lagos-Ibadan Train Service, and Warri-Itakpe Train Service.
In addition, the corporation runs narrow gauge services on the Iddo-Ijoko, Iddo-Kajola, and Port Harcourt-Aba corridors.
Sources familiar with the corporation’s finances identified diesel costs as a major challenge. According to findings, spending on Automotive Gas Oil exceeded N1.2bn in April 2026 alone.
As a result, fuel now accounts for a significant portion of the corporation’s monthly operating expenses.
Maintenance and Spare Parts Costs Continue to Climb
Officials also disclosed that maintenance costs have risen sharply in recent months.
The corporation must maintain locomotives, coaches, rail tracks, signalling systems, and station facilities. At the same time, inflation has increased the cost of routine repairs and technical support.
Furthermore, the rising cost of imported spare parts has worsened the situation. Many components require foreign exchange, which has become more expensive.
A senior management official said the corporation is reviewing available options carefully.
“Operational costs continue to rise, while fares have largely remained unchanged. Therefore, management must consider practical solutions to sustain operations,” the source said.
Security Challenges Add to Operational Burden
Beyond fuel and maintenance costs, security concerns have created additional financial pressure.
The corporation has increased spending on asset protection due to recurring cases of vandalism and theft across rail infrastructure.
Moreover, several incidents have forced emergency repairs on critical facilities. These unplanned expenditures have stretched available resources further.
The Abuja-Kaduna corridor, one of the busiest rail routes in the country, has recorded higher operating costs because of increased security requirements and maintenance demands.
Fare Review May Affect Passenger and Cargo Services
Sources indicated that any approved tariff adjustment would affect both passenger and freight operations.
The review could cover standard gauge routes such as Abuja-Kaduna and Lagos-Ibadan. Likewise, narrow gauge mass transit services may also be affected.
However, management has not announced a final decision on the proposed increase.
NRC Assures Nigerians of Affordable Rail Services
Speaking on the development, NRC Managing Director, Dr. Kayode Opeifa, acknowledged the impact of rising operational expenses.
Nevertheless, he assured Nigerians that the corporation remains committed to affordable transportation.
“The Federal Government remains committed to making transportation affordable for Nigerians,” Opeifa said.
He added that the corporation would continue to explore sustainable options without undermining public interest.
According to him, the NRC will also remain aligned with President Bola Tinubu’s Renewed Hope Agenda by providing accessible, safe, reliable, and efficient rail services nationwide.
