The Nigerian Railway Corporation (NRC) is considering a review of its passenger and cargo fares as mounting operational expenses continue to put pressure on its finances, according to sources within the corporation.
Officials familiar with the agency’s financial situation disclosed that the rising cost of Automotive Gas Oil (diesel) has become one of the most significant challenges confronting railway operations nationwide.
According to the sources, the corporation spent more than N1.2 billion on diesel alone in April 2026, making it one of the largest components of its monthly operating expenditure.
Insiders also revealed that the NRC is grappling with increasing maintenance costs associated with locomotives, coaches, rail tracks, signalling equipment and station infrastructure.
A senior management official, who requested anonymity because he was not authorised to speak publicly on the matter, said the high cost of imported spare parts purchased with foreign exchange has compounded the corporation’s financial burden.
“Management is carefully reviewing the situation. The reality is that 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 source said.
The official added that the corporation’s finances have come under growing strain in recent months due to rising fuel prices, inflation, security concerns and unplanned repairs.
“Several factors have affected our projections. Fuel costs have increased substantially. Security-related expenditures have also risen because of the need to protect railway assets against vandalism and theft. We have had to undertake emergency repairs on infrastructure and rolling stock, while inflation continues to impact virtually every aspect of our operations,” the source stated.
Findings further indicated that repeated cases of vandalism and attacks on railway facilities in different parts of the country have forced the corporation to channel more resources into repairs and asset protection.
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The Abuja-Kaduna rail corridor, one of Nigeria’s busiest routes, has reportedly experienced increased operating costs due to heightened security requirements and extensive maintenance needs.
Sources said any approved fare adjustment would likely affect both passenger and freight services across the railway network, including the Lagos-Ibadan and Abuja-Kaduna standard gauge lines, as well as narrow-gauge mass transit services.
Reacting to the development, NRC Managing Director, Dr. Kayode Opeifa, acknowledged the impact of rising operational costs but assured Nigerians that efforts were being made to keep rail transportation affordable.
“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,” Opeifa said.
He stressed that the corporation would continue to support President Bola Tinubu’s Renewed Hope Agenda by providing rail services that are accessible, safe, efficient and reliable for millions of Nigerians who depend on the railway system for transportation.