NRC operates at a loss, borrowing to keep train services running – Opeifa

By Folarin Kehinde

The Nigerian Railway Corporation (NRC) has announced that it is operating at a loss and has had to borrow money to keep train services running across the country, citing the high cost of diesel as the main factor.

Managing Director Dr Kayode Opeifa made the statement during the second town‑hall meeting with railway workers and labour unions at the NRC headquarters in Ebute Metta, Lagos.

A statement released on Friday by the NRC’s Chief Public Relations Officer, Callistus Unyimadu, reported that Opeifa said the rising diesel price had become a major challenge for the corporation’s operations.

“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,” Opeifa said.

Despite the financial difficulties, Opeifa assured workers that management would continue to prioritise their welfare and improve the work environment.

He praised railway workers for their dedication and resilience, noting that their efforts had kept the corporation running despite operational and financial challenges.

“Let me assure you that the corporation will continue to prioritise your welfare. Without any doubt, your efforts have kept the corporation going,” he told the workers.

Opeifa added that improvements in workers’ welfare would depend on an improvement in the corporation’s financial position and revenue generation.

The managing director also pledged continued engagement with the corporation’s labour unions, assuring that disputes would be resolved through dialogue rather than strike actions.

The statement said Opeifa directed the Human Resources Department to immediately address issues affecting workforce efficiency and staff productivity.

On the issue of staff quarters and monetisation, he explained that the federal government had exempted the corporation from the policy because of the strategic importance of railway accommodation for essential operational staff.

“Though the unions won the monetisation case at the High Court, we have filed an appeal, and the intention is to canvass the reason for the provision of the rest houses. We shall continue to engage with all stakeholders regarding this matter in the overall interest of what is best for the corporation. However, as law‑abiding citizens, we shall enforce the judgment of the court,” he said.

The NRC boss also disclosed that work would soon commence on a proposed high‑speed rail project linking Lagos and Abuja, adding that the development would require additional operational facilities and accommodation for critical staff.

He further announced plans to rehabilitate the Corporate Planning Building as well as the Accounts/Audit and Mechanical buildings within the corporation’s headquarters.

Opeifa also revealed plans for the construction of a new national headquarters for the NRC along Murtala Muhammed Way in Ebute Metta, Lagos.

Earlier, President of the Nigerian Union of Railway Workers, Innocent Ajiji, and his counterpart in the Senior Staff Workers Union, Marcel Okeke, commended the managing director for ongoing reforms in the corporation and urged the federal government to expedite payment of the 95 per cent enhancement benefit owed railway workers.

The meeting featured the presentation of certificates of excellence and cash awards to 13 workers drawn from different operational divisions and directorates in recognition of their outstanding contributions to the corporation in 2025.

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