Underutilisation of Nigeria’s Railway Infrastructure and the Need for Legislative Oversight

Abstract

Nigeria’s railway sector has attracted substantial public investment and external borrowing over the past decade, including loans reportedly exceeding $2.5 billion from the China Exim Bank to support rail modernisation and expansion. Despite these commitments, the sector remains underutilised, with limited network coverage, low service frequency, and inconsistent operations across key corridors. Recent developments show that the Nigerian Railway Corporation (NRC) has commenced the recertification process for the Lagos Rail Mass Transit Red Line following the issuance of a provisional licence. While this reflects ongoing regulatory efforts to ensure compliance with safety and operational standards, it also highlights broader systemic concerns regarding operational readiness, infrastructure functionality, and the overall performance of Nigeria’s rail system. Key issues arise regarding whether the scale of investment in the railway sector is translating into measurable improvements in service delivery. Many rail lines appear to be underperforming, operating below capacity with limited daily trips and restricted service coverage. In addition, there is limited publicly accessible information linking borrowed funds to tangible outcomes such as increased passenger volumes, improved service frequency, or expanded operational networks. Concerns also persist regarding transparency and accountability in the utilisation of funds, as well as the certification status of rail infrastructure nationwide. There is insufficient clarity on which rail lines are fully operational, which operate under provisional approvals, and whether all existing infrastructure meets established safety and regulatory standards. These gaps raise questions about efficiency, safety, and the long-term sustainability of investments in the sector. The underperformance of the railway system represents a missed economic opportunity. A functional and efficient rail network is critical for reducing pressure on road transport, lowering logistics and transportation costs, and enhancing national productivity. Given its constitutional oversight responsibilities, the National Assembly has a critical role to play in ensuring accountability, transparency, and improved service delivery within the railway sector. Accordingly, the National Assembly, through its Committees on Land Transport and Public Accounts, may consider the following actions: Invite the Nigerian Railway Corporation and relevant ministries to provide a comprehensive status report on all railway projects, including operational lines, service frequency, passenger volumes, and infrastructure gaps. Request full disclosure of funds borrowed for railway development since 2019, including disbursement, utilisation, and measurable outcomes, alongside a cost-benefit analysis of major projects. Seek clarification on the certification status of all rail lines, including compliance with safety and operational standards and timelines for completing recertification processes. Mandate periodic (quarterly) reporting on train operations, maintenance, and utilisation levels to ensure efficient use of existing infrastructure.