HomeNationTransportANXIETY AS NRC WEIGHS FARE INCREASE AMID RISING OPERATING COSTS

ANXIETY AS NRC WEIGHS FARE INCREASE AMID RISING OPERATING COSTS

Rail passengers and freight operators in Nigeria are expressing growing concern over a possible increase in fares as the Nigerian Railway Corporation struggles with rising operational costs across its network.

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The development follows the end of a temporary 50 percent Eid-el-Kabir discount on train fares, which had briefly reduced travel costs for passengers during the festive period.

The corporation is reportedly facing sharp increases in expenses linked to diesel consumption, maintenance, security operations, staffing, and infrastructure upkeep. These pressures are now placing significant strain on daily rail operations nationwide.

The NRC currently runs major standard-gauge routes including the Abuja–Kaduna, Lagos–Ibadan, and Warri–Itakpe corridors, alongside several narrow-gauge commuter services such as the Iddo–Ijoko, Iddo–Kajola, and Port Harcourt–Aba lines.

Internal sources indicate that diesel usage alone has become a major financial burden, with monthly spending reportedly exceeding ₦1.2 billion as of April 2026. Imported spare parts, purchased in foreign currency, have also contributed to rising costs due to exchange rate pressures.

A senior official within the corporation noted that management is reviewing its pricing structure due to the imbalance between rising expenses and relatively stable fares. According to the source, the options under consideration include fare adjustments or reduced operations on some routes.

Additional cost pressures are coming from security needs, as vandalism and theft of railway assets have increased the demand for protection and emergency repairs. Inflation, higher insurance premiums, and rising electricity tariffs have further compounded the situation.

Routes such as the Abuja–Kaduna line, one of the busiest passenger corridors, have been particularly affected by increased security and maintenance requirements.

If fare adjustments are approved, they are expected to impact both passenger and freight services across major rail corridors, raising concerns that logistics costs could increase and potentially affect the prices of goods transported by rail.

Passenger groups have urged the government to maintain subsidies or support measures to keep rail transport affordable for everyday commuters.

Responding to the concerns, the Managing Director of the Nigerian Railway Corporation, Kayode Opeifa, acknowledged the financial challenges but said the agency remains committed to ensuring affordable and reliable rail services in line with national transport goals.

He emphasized that the corporation would continue to balance financial sustainability with its public service mandate, noting that options are being explored to maintain service delivery without placing excessive burden on passengers.

Stakeholders say the coming weeks will be crucial as the railway agency weighs its financial realities against its responsibility to keep transportation accessible.

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