Headlines

NRC unleashes rail reforms that will berth CNG- powered trains in Nigeria

Funso OLOJO

In a few years to come, trains will be run on Compressed Natural Gas(CGN) that will replace the diesel – powered train engines in the country.

This revolution, which is part of the silent reforms in train services initiated by the Nigerian Railway Corporation( NRC) under the dynamic leadership of Dr Kayode Opeifa, is a fall out of the recently signed Memorandum of Understanding(MoU) between the Corporation and the Presidential Initiative on Compressed Natural Gas (PI-CNG).

The conversion of diesel- powered engines to CGN – powered train engines, is meant to cost costs and engender efficiency in rail services in Nigeria.

Making this disclosure during an interview with a National Television on Monday, June 2nd, 2025, Dr Kayode Opeifa, the Managing Director of the Nigeria Railway Corporation (NRC), noted that the partnership will help reduce diesel dependence and operational costs.

He noted that diesel remains the major cost burden for the NRC, used for engines, stations, and other facilities.

The collaboration, according to him,will involve converting diesel engines to CNG-compatible engines, and training young Nigerians through the NRC’s training school in various technologies, including CNG conversion.

Opeifa said this will lead to nationwide deployment of CNG stations and facilities, as well as CNG-powered trains.

He further noted that the ongoing reforms in the railway system are yielding positive results, with more Nigerians now taking advantage of rail services across various states.

Opeifa believed that the rail system is being revitalized to serve the economic and social integration needs of the country.

He recounted the challenges the NRC has faced, including recurring washouts due to weather conditions and vandalism, but maintained that the rail sector is being repositioned to play a major role in reducing transport costs and improving national logistics.

He revealed that the NRC had earlier been operating between areas such as Apapa, Moniya, and Ilorin, and had plans to extend to places like Minna and Kaduna.

However, these plans were affected by the washouts and other disruptions.

“Despite this, states such as Plateau and others such as Lagos, which has introduced the Red Line, are already benefitting from the track access programme, which allows idle tracks to be optimized for logistics use.

Dr. Opeifa disclosed that cargo is now being moved efficiently from Lagos to other parts of the country, with private logistics companies showing increasing interest.

He cited the example of the AKK gas pipeline project, noting that the pipes used were transported by rail from Warri Port to various locations, including Kaduna and Kano.

He described the development as a “railway cargo revolution,” aimed at optimizing the rail system for the benefit of Nigerians.

According to him, the railway’s contribution to the GDP is becoming more noticeable, especially in the reduction of transportation costs and, indirectly, prices of goods in the country.

The NRC boss commended the capacity and resilience of Nigerian railway engineers, describing how they had restored broken-down engines on the Warri-Itakpe Train Service (WITS), within three days, despite tough working conditions.

He emphasized the need to showcase this capacity and expand it beyond the rail sector.

Opeifa said the vision is to have a railway system that facilitates economic, regional, and social integration.

He added that if the transport sector’s contribution to GDP reaches at least 6%, it would drive national development and poverty alleviation through lower transportation and logistics costs.

Highlighting practical examples, he spoke of commuters who save up to 50% in travel costs using the rail system.

Some passengers, he said, travel from Bayelsa to Port Harcourt, board a train to Abuja, and continue their journey north — all with a single ticket, making it both affordable and efficient.

He also mentioned the newly operational Port Harcourt–Aba line, which is already boosting trade and commerce.

Traders are now commuting daily to buy goods and return the same day, thanks to the efficiency of rail services.

Opeifa assured that Enugu and other regions are also part of the expansion plans, with significant investment already committed to infrastructure and modern stations.

He expressed optimism that in the next two to four years, trains would reach almost every part of Nigeria.

On the issue of vandalism, he decried the frequent attacks on railway assets, especially in the North Central region.

He stressed that rail infrastructure is a national asset and must not be treated as scrap.

Tampering with the rail lines, he warned, could cause accidents and loss of life.

Opeifa concluded by urging Nigerians to support the federal government’s rail revolution, assuring that more announcements and projects will roll out in the coming months.

He said the NRC is determined to provide rail services that are accessible, affordable, and beneficial to all Nigerians.

Headlines

NRC grants Lagos Government permanent approval to operate Red Line rail services

Funso OLOJO, Editor

The Nigerian Railway Corporation (NRC) has granted final approval to the Lagos State Government to operate two of its rail tracks under the Track Sharing Agreement, paving the way for the full operation of the Lagos Rail Mass Transit (LRMT) Red Line project.

The LRMT Red Line commenced passenger operations on October 15, 2024, with morning and evening peak-hour services following its inauguration by President Bola Ahmed Tinubu.

The permanent approval follows the temporary operating approval granted by the NRC in 2025 under the Track Sharing Agreement with the Lagos State Government.

Presenting the Permanent Operating Licence to the Lagos Metropolitan Area Transport Authority (LAMATA) on Tuesday, June 30th, 2026, the Managing Director of the Nigerian Railway Corporation, Dr. Kayode Opeifa, said the approval confers on the Lagos State Government all the rights and obligations contained in the Track Sharing Agreement.

According to him, the licence also empowers the state to operate rail services in line with international best practices.

Opeifa described the milestone as a testament to the mutual trust, cooperation and shared vision that have continued to define the partnership between the NRC and the Lagos State Government.

“Beyond providing access to the tracks, our collaboration has also included the training and capacity development of the Red Line’s operational personnel, demonstrating the immense value of strong institutional partnerships,” he said.

He commended the Lagos State Government for its confidence in the NRC and its sustained commitment to the partnership.

“I also commend the Government for its remarkable investment in public transportation, particularly in the rail subsector, including the acquisition of adequate rolling stock to meet the growing mobility needs of Lagosians,” he added.

The NRC Managing Director noted that the development of modern rail infrastructure requires foresight, substantial capital investment and sustained political will, qualities he said the Lagos State Government has consistently demonstrated.

Opeifa also urged other state governments across the federation to invest in rail infrastructure and services to complement the Federal Government’s efforts to strengthen Nigeria’s railway network.

According to him, expanding rail transportation nationwide would ease congestion on highways, reduce logistics costs, improve passenger mobility, stimulate industrial and commercial activities, and accelerate national economic growth.

He stressed that rail transportation remains the backbone of efficient mass transit systems in major cities around the world.

“Continued investment in rail infrastructure is essential to providing safe, reliable, environmentally sustainable and high-capacity mobility for our growing population, while significantly reducing pressure on our road network,” he said.

Opeifa reaffirmed the NRC’s commitment to fostering productive partnerships that will transform Nigeria’s transport landscape.

“Together, we will continue to build an integrated, efficient, safe and sustainable railway system that serves the aspirations of all Nigerians,” he concluded.

Headlines

NPA unveils multi-agency task force to tackle resurgent port access gridlock

Funso OLOJO, Editor

The Nigerian Ports Authority (NPA) has launched a multi-agency task force to combat the resurgence of traffic gridlock choking the Lagos port access roads, in a fresh push to restore seamless cargo evacuation and sustain recent gains in port efficiency.

The intervention followed a stakeholders’ meeting convened by the Managing Director of the NPA, Dr. Abubakar Dantsoho, on June 23rd, 2026, where security agencies, freight forwarders, truck operators and representatives of the Lagos State Government agreed on coordinated measures to eliminate the bottlenecks disrupting cargo movement.

At the meeting, stakeholders identified illegal extortion points, overlapping responsibilities among security agencies and other operational distortions as major factors responsible for the renewed congestion along the port corridor.

Speaking on the outcome of the meeting, the NPA’s General Manager, Corporate and Strategic Communications, Mr. Ikechukwu Onyemakara, said the Authority’s overriding priority is to guarantee the unhindered movement of cargo to and from the nation’s seaports.

According to him, the task force comprises the NPA, the Police, the National Association of Government Approved Freight Forwarders (NAGAFF), the Association of Nigerian Licensed Customs Agents (ANLCA), the Federal Road Safety Corps (FRSC), the Maritime Workers Union of Nigeria (MWUN), the Nigerian Association of Road Transport Owners (NARTO) and the Association of Maritime Truck Owners (AMATO).

“The responsibility of the task force is to monitor truck movement on the port access roads on a regular basis, identify any disruption capable of causing gridlock and immediately resolve such challenges,” Onyemakara said.

He stressed that members of the task force would not establish checkpoints along the corridor but would maintain strategic presence at designated locations to ensure compliance without obstructing traffic.

To enhance rapid response, Onyemakara disclosed that the task force has created a dedicated WhatsApp platform through which members can instantly report infractions or emerging traffic issues for immediate intervention.

On the long-delayed renewal of the Electronic Truck Call-Up (ETO) system contract, the NPA spokesman said the Authority is reviewing the terms to ensure a more robust contractual framework before awarding a fresh agreement.

He explained that although the previous contract had expired, the ETO platform remains operational under the management of the Truck Transit Parks (TTP) pending completion of the procurement process.

He expressed confidence that the renewal would be concluded soon.

Reaffirming the Authority’s commitment to maintaining free-flowing port access roads, Onyemakara said efficient logistics remain central to the NPA’s drive to improve Nigeria’s port competitiveness and preserve its growing international reputation.

“We are more interested in the free flow of logistics into our ports than anyone else because it is in our own interest,” he said.

“If you look at the international recognition we are receiving, including the World Bank report, we are determined to sustain and even surpass the improvements already recorded in our port system.
“You can be assured that we remain fully committed to achieving the best possible performance from our ports.”

Headlines

Customs Steps Up Nationwide Green Tax Awareness Ahead of July 1 Rollout

Funso OLOJO, Editor

The Nigeria Customs Service (NCS) has intensified its nationwide sensitisation campaign ahead of the July 1, 2026 implementation of the Green Tax Surcharge and related fiscal adjustments, aimed at promoting environmental sustainability and encouraging the importation of cleaner vehicles.

The awareness campaign, held on Friday July 26th, 2026 at the Apapa Area Command, brought together Customs officers, licensed customs agents, freight forwarders, importers and other key stakeholders under the theme: “Implementation of the Green Tax Surcharge and Related Fiscal Adjustments.”

Representing the Comptroller-General of Customs, Adewale Adeniyi, the Zonal Coordinator, Zone A, Mohammed Babadende, said the exercise was designed to ensure stakeholders fully understand the policy before its implementation.

“This sensitisation is designed to ensure that every stakeholder clearly understands the policy before implementation. Our objective is to eliminate uncertainty, promote voluntary compliance and guarantee uniform application of the Green Tax Surcharge across all commands,” Babadende stated.

Delivering a technical presentation, the Comptroller in charge of Tariff, System Audit and Coordination, Murtala Muazu, explained that the Green Tax Surcharge is different from conventional fiscal measures and would therefore require a separate assessment process.

He disclosed that the Service has simplified implementation through the HS Code declaration platform to facilitate seamless compliance by importers and clearing agents.

Muazu also revealed that the Federal Government has reduced import levies on vehicles from 20 per cent to 10 per cent, while import duty on used vehicles has been slashed from 15 per cent to five per cent to cushion the impact of the new environmental surcharge.

Area Controllers who participated in the sensitisation urged importers, licensed customs agents and the trading public to embrace the initiative, stressing that the reduction in import levies would lower the cost of doing business, promote legitimate trade and ultimately reduce transportation costs.

Stakeholders welcomed the policy but called for sustained public enlightenment to deepen understanding and ensure seamless compliance ahead of the July 1 commencement date.