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NRC Mulls Fare Hike on Fuel Surge
The Nigerian Railway Corporation (NRC) is considering an upward review of passenger and freight tariffs as mounting operational costs continue to pressure its finances.
The planned fare adjustment comes barely hours after the expiration of the Federal Government’s 50 per cent Eid-el-Kabir train fare discount, a temporary intervention introduced to cushion transportation costs for Nigerians during the festive season.
Findings showed that the corporation is battling escalating expenses on fuel, maintenance, security, personnel, spare parts and infrastructure management, with officials warning that the current pricing structure may no longer be sustainable.
The NRC currently operates three standard gauge corridors, which are the Abuja-Kaduna Train Service, Lagos-Ibadan Train Service and Warri-Itakpe Train Service. These standard gauges are in addition to narrow gauge mass transit operations on the Iddo-Ijoko, Iddo-Kajola and Port Harcourt-Aba routes.
Sources familiar with the corporation’s finances said the rising cost of Automotive Gas Oil, commonly known as diesel, has emerged as one of the biggest challenges facing the corporation.
Economic Confidential gathered that spending on diesel alone exceeded N1.2bn in April 2026, accounting for a significant portion of the corporation’s operating costs for the month under review.
Inside sources also told our correspondent that the NRC is contending with increasing maintenance expenses for locomotives, coaches, tracks, signalling systems and station facilities.
Another top management staff member, who spoke on the condition of anonymity because he was not authorised to comment publicly on the matter, hinted that the soaring cost of imported spare parts, many of which are procured with foreign exchange, has further worsened the financial burden.
He said, “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 official further disclosed that the corporation’s financial position has come under increasing pressure in recent months due to a combination of rising costs and operational disruptions.
“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 added.
Findings further revealed that recurring incidents of vandalism and attacks on railway infrastructure across parts of the country have forced the corporation to divert resources to repairs and asset protection, further stretching its finances.
The Abuja-Kaduna route, one of the country’s busiest rail corridors, has reportedly witnessed higher operating costs due to heightened security requirements and maintenance demands.
Sources said that if approved, the fare review would affect both passenger and cargo services across the network, including the Lagos-Ibadan and Abuja-Kaduna standard gauge corridors as well as narrow gauge mass transit routes.
When contacted, the Managing Director of the Nigerian Railway Corporation, Dr Kayode Opeifa, acknowledged the pressure created by rising operational costs but assured commuters that the corporation remained committed to keeping rail transportation affordable.
Opeifa said, “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.”
He emphasised that the corporation would continue to align with President Bola Tinubu’s Renewed Hope Agenda by ensuring that rail services remain accessible, safe, efficient and reliable for millions of Nigerians who depend on railway transport for daily commuting.