Lagos is the largest city in Nigeria and is the country's most important commercial center. With an estimated population of over 17 million people, Lagos ranks among the most heavily populated cities in the world. From a small colonial town in the early 20th century, Lagos has now grown into a large metropolis. This dynamic city has experienced rapid urbanization and has lacked sufficient parallel infrastructure development. The vast number of motorized vehicles in the cities plagues the streets, causing tremendous congestion and increased air pollution.

The recent implementation of a bus rapid transit (BRT) system has proven to be highly successful. With estimated daily ridership at more than 180,000 passengers, the system has already surpassed expected passenger levels. The BRT system was implemented by LAMATA on a public private partnership (PPP) basis. However, there continues to be a need for significantly more urban transport capacity.

LAMATA has developed a conceptual framework for rail mass transit system that would provide passenger rail services on the most heavily travelled corridors in Lagos. The first two lines being developed are the Red Line and the Blue Line. Both lines will be developed on a PPP basis, with the Lagos State Government providing all rail and station infrastructure. The private sector will be invited to operate the system under a 25 year concession structure. Design and construction is expected to commence early in 2009.