This research work centered on the effect impact of rail transport services on economic development in Lagos City, Nigeria. Rail transport services arethe movement of people and commodities through the use of railways. Economic Development in other words programs, policies, or activities that seek to improve the economic well-being and quality of life for communities. The researcher focused more on specific objectives during its analysis including the effect of rail freight, excursion train, and rail services on market development, improved education, and job creation. This research study will be of significance to the government at all levels, the general public, and future academic researchers. In this research work, primary data were collected from 208 respondents, through the use of structured questionnaires and later adopted chi- square statistical techniques for hypotheses testing. However, findings revealed there is a strong significant positive effect between train freight, excursion train, rail services and market development, improved education, and job creation in Lagos state as the three null hypotheses were rejected. The researcher concludes that the expansion and improvement of the rail network creates more jobs by connecting laborers, businesses, and activity centers efficiently. This study recommends that the government should develop and prioritize the construction of rail infrastructures and train stations to create more jobs.Lastly, more excursion packages should be created to give proper enlightenment on the rail transportation system in Lagos State and Nigeria.