The Nigerian Railway Corporation (NRC) says that it has recommended an increase in ticket fares for the Lagos-Ibadan route to the Federal Government due to challenges in the procurement of diesel and the rising cost of operations.
The corporation said that hike in fares is outside its control and as such would require authorization from the Federal Ministry of Transportation.
This was disclosed by the Managing Director of NRC, Fidet Okhiria, during an interview on Tuesday where he said that the corporation has cut down the number of return trips on the route from 6 to 2 every day due to the hike in the price of diesel.
Okhiria, however, noted that the NRC does not want to price itself out of the market as they are competing with other road transporters who use petrol, which is not increasing at the same rate as diesel.
The price of diesel had skyrocketed to over N800 per litre due to the disruption in the oil market caused by the Russia-Ukraine war.
This is further exacerbated by the fact that Nigeria imports most of its refined petroleum product needs at a very high exchange rate.