Nigerian Railway Corporation plans fare hike amid fuel price surge
The Nigerian Railway Corporation (NRC) is considering an upward review of passenger and freight tariffs as rising operational costs continue to put pressure on its finances, The PUNCH has learnt.
The proposed fare increase comes shortly after the expiration of the Federal Government’s 50 per cent Eid-el-Kabir train fare discount, which was introduced to ease transportation costs for Nigerians during the festive period.
Investigations revealed that the corporation is grappling with escalating expenses related to fuel, maintenance, security, personnel, spare parts and infrastructure management, prompting concerns that the current fare structure may no longer be sustainable.
The NRC currently operates three standard gauge rail corridors—the Abuja-Kaduna, Lagos-Ibadan and Warri-Itakpe routes—in addition to narrow gauge mass transit services on the Iddo-Ijoko, Iddo-Kajola and Port Harcourt-Aba corridors.
Sources familiar with the corporation’s finances disclosed that the soaring cost of Automotive Gas Oil (AGO), popularly known as diesel, has become one of the most significant challenges confronting the railway operator.
According to findings, the corporation spent more than N1.2 billion on diesel alone in April 2026, accounting for a substantial portion of its operating expenses during the period.
Insiders also revealed that the NRC is contending with increasing maintenance costs for locomotives, coaches, tracks, signalling systems and station facilities.
A senior management official, who spoke on condition of anonymity because he was not authorised to comment publicly on the matter, said the rising cost of imported spare parts—many of which are procured using foreign exchange—has further 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,” the official said.
“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 further explained that the corporation’s finances have come under increasing strain 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 official added.
Findings also showed that recurring cases of vandalism and attacks on railway infrastructure in parts of the country have forced the corporation to divert additional resources to repairs and asset protection.
The Abuja-Kaduna rail line, one of the busiest corridors in the country, has reportedly experienced higher operating costs due to increased security requirements and maintenance demands.
Sources indicated that if approved, the fare adjustment would affect both passenger and cargo services across the NRC network, including the Lagos-Ibadan and Abuja-Kaduna standard gauge routes, as well as narrow gauge mass transit operations.
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 remains committed to keeping rail transportation affordable.
“The Federal Government remains committed to making transportation affordable for Nigerians,” Opeifa said.
“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 added 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 transportation for their daily activities.
The proposed fare review, if approved, is expected to balance the corporation’s sustainability goals with the need to provide affordable transportation services to the public amid prevailing economic challenges.