NRC Running at a loss, borrowing to sustain operations – says MD

The Nigerian Railway Corporation (NRC) has disclosed that it is currently operating at a loss and has resorted to borrowing to sustain railway services across the country amid rising operational costs, particularly the soaring price of diesel.

Kayode Opeifa, Managing Director of the corporation, made the disclosure during the NRC’s second quarterly town hall meeting with members of staff in Lagos, where he reassured workers of management’s commitment to their welfare despite the corporation’s financial challenges.

According to a statement issued on Friday, Opeifa said the corporation remains committed to improving the welfare and working conditions of its employees but urged workers to understand the difficult financial realities confronting the organisation.

“Let me assure you that the corporation will continue to prioritise your welfare, but you must appreciate our precarious financial position. 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,” he said.

The NRC boss commended workers for their resilience and dedication, noting that their efforts had played a significant role in sustaining the corporation’s operations despite the challenges.

He assured employees that management would not hesitate to improve staff welfare packages as soon as the corporation’s financial position improves.

Opeifa also pledged to maintain a cordial relationship with labour unions, stressing that under his leadership, disputes would be resolved through dialogue rather than industrial action.

He directed the corporation’s Human Resources Department to engage with workers and address outstanding concerns affecting the workforce.

As part of plans to modernise and expand rail services, Opeifa revealed that the corporation would soon commence work on deploying a speed train service between Lagos and Abuja.

According to him, the project will require additional land for rail corridor development as well as the construction of modern residential facilities for essential railway workers.

The managing director further disclosed plans to build a befitting national headquarters for the corporation at Murtala Muhammed Way, Ebute-Meta, Lagos.

Providing updates on ongoing reforms, Opeifa said management had intensified efforts to tackle the persistent challenge of railway asset vandalism through stronger collaboration with security agencies, host communities and other stakeholders.

He noted that enhanced security measures were being implemented across rail corridors and facilities to protect infrastructure, personnel and passengers.

“During the session, we provided updates on the strides we have made in tackling the persistent challenge of vandalism of railway assets through stronger collaboration with security agencies, host communities and other critical stakeholders. We are also implementing enhanced security measures across our corridors and facilities to safeguard our infrastructure, personnel and passengers,” he stated in a post on his X account following the meeting.

Earlier, Innocent Ajiji, President of the Nigeria Union of Railwaymen (NUR), and Marcel Okeke, President of the Senior Staff Association of Statutory Corporations and Government-Owned Companies, commended the managing director for ongoing reforms within the corporation.

The union leaders, however, urged management to expedite action on the payment of the outstanding 95 per cent enhancement benefits due to railway workers.

The NRC management expressed confidence that ongoing reforms, coupled with the commitment of employees and support from stakeholders, would help build a stronger, safer and more efficient railway system capable of meeting the transportation needs of Nigerians.