The Nigerian Railway Corporation (NRC) is considering a review of passenger and freight charges as rising operational expenses continue to put pressure on its finances.
The proposed adjustment comes shortly after the expiration of the Federal Government’s 50 per cent Eid-el-Kabir train fare subsidy, which was introduced to ease transportation costs during the festive period.
Sources within the corporation revealed that increasing costs associated with fuel, maintenance, security, personnel, spare parts and infrastructure management have made the current fare structure difficult to sustain.
The NRC operates major standard gauge routes, including the Abuja-Kaduna, Lagos-Ibadan and Warri-Itakpe rail lines, as well as narrow gauge services on the Iddo-Ijoko, Iddo-Kajola and Port Harcourt-Aba corridors.
Officials familiar with the corporation’s operations identified the rising price of diesel as a major challenge. According to sources, diesel expenditure exceeded N1.2 billion in April 2026 alone, accounting for a significant share of operating costs.
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The corporation is also facing growing maintenance expenses covering locomotives, coaches, rail tracks, signalling equipment and station facilities. In addition, the increasing cost of imported spare parts, many of which are purchased with foreign exchange, has further strained available resources.
A senior official, who requested anonymity, said management is reviewing available options as expenses continue to outpace revenue. He noted that the corporation may have to adjust fares to reflect current economic realities or reduce services on some routes.
Reacting to the development, Managing Director of the NRC, Kayode Opeifa, acknowledged the financial pressure but assured commuters that efforts are ongoing to keep rail transportation affordable while maintaining efficient services across the network.
