The inadequacy of road transport to cope effectively with the movement of passengers in Nigeria cannot be overemphasised as this has implications on the economy. Rail transport plays a key role in the socio-economic development of nations. However, the non-functioning of the railway system due to neglect over the years further compounded the problem. Due to the ever-increasing passenger traffic especially in the urban centres, there is urgent need to introduce a transit system that is fast, safe, reliable, and clean with high passenger capacity to address the transportation problem. The light rail transit is advocated because it has high passenger capacity and cheaper to construct than the metro rail line. It also has the potentials of reducing congestion, travel time and environmental pollution experienced on road. Furthermore, it improves the urban environmental quality, productivity and economy. It is important that government should revitalize the rail system by developing programmes that encourage light rail transit. This can be achieved faster through the public-private partnership especially in the area of finance and management in which government has limited capacity and expertise.