High Diesel Costs Threaten Rail Operations, Says NRC

The Managing Director of the Nigerian Railway Corporation (NRC), Dr. Kayode Opeifa, has disclosed that the soaring cost of diesel is pushing the corporation’s operations to the brink, forcing it to operate at a loss and rely on borrowings to sustain train services.

Opeifa made the disclosure during a town hall meeting with railway workers and union leaders in Lagos, according to a statement issued by the corporation on Friday.

He said the rising cost of fuel had significantly increased the financial burden on the NRC, making train operations increasingly difficult.

“The fact is that the cost of diesel alone has almost made it impossible to operate our trains. We are running at a loss, and we had to resort to borrowings to keep our operations going,” he said.

Despite the financial challenges, Opeifa assured workers that the corporation remained committed to their welfare and would continue to improve working conditions as its financial situation improves.

He commended railway workers for their dedication and contributions to sustaining the corporation’s operations, noting that management would continue to engage constructively with labour unions to resolve concerns without resorting to industrial action.

The NRC boss directed the corporation’s Human Resources Department to address issues raised by employees and reaffirmed management’s commitment to maintaining a cordial relationship with staff.

Looking ahead, Opeifa disclosed that the corporation plans to deploy a high-speed train service between Lagos and Abuja as part of efforts to expand and modernise rail transportation in the country.

According to him, the planned expansion will require additional land for rail corridors as well as modern residential facilities for essential railway workers.

He also revealed plans to construct a new headquarters for the corporation along Murtala Muhammed Way in Ebute-Meta, Lagos.

Leaders of the two railway unions — the Nigerian Union of Railway Workers (NUR) and the Senior Staff Workers Union — praised the managing director’s ongoing reforms and urged management to expedite payment of the outstanding 95 per cent enhancement benefit owed to railway workers.

The event also featured the presentation of certificates of excellence and the NRC Managing Director’s Cash Award to 13 employees in recognition of their outstanding contributions to the corporation’s development in 2025.

The report was made available by the News Agency of Nigeria (NAN).