Follow Us on Google
By Oluseye Ojo
The South West Development Commission (SWDC) has secured a provisional rail operating and track access licence from the Nigerian Railway Corporation (NRC).
This has opened the door for the commission to commence passenger and freight rail services across existing rail corridors in the South West as part of efforts to deepen regional connectivity and drive economic transformation.
Speaking with journalists in Ibadan on Thursday, the Managing Director and Chief Executive Officer of SWDC, Dr Charles ‘Diji’ Akinola, said the licence authorises SWDC to operate on both narrow and standard gauge rail networks already linking communities, industrial hubs, businesses and economic centres across Lagos, Ogun, Oyo, Osun, Ondo and Ekiti states.
He described the approval as a major shift from conceptual planning to full implementation.
“This licence is not just a document. It is the green light to rebuild the South-West’s economic spine on rail.
“We are moving from plans to tracks, from talk to trains. Our partnership with the NRC will put freight on rails, people on trains, and opportunity back into the hands of businesses and communities across the South West,” he added.
Akinola clarified that the approval does not cover the construction of new rail lines but rather permits SWDC to operate passenger and freight services on already existing rail infrastructure within the region.
He explained that the licence would facilitate the rollout of the South-West Rail, Agro-Industrial and Logistics (SW-RAIL) Platform, a regional economic initiative designed to strengthen logistics competitiveness, unlock agro-industrial growth, improve mobility and accelerate economic development across the six South-West states.
According to him, the SW-RAIL Platform is being developed as a rail-driven economic corridor that will integrate freight systems, agro-logistics, industrial parks, inland logistics hubs, cold-chain infrastructure, port connectivity, passenger transportation systems and transit-oriented developments.
Other News
Akinola lamented that despite being Nigeria’s largest economic bloc, the South West still grapples with rising freight costs, congestion and severe supply chain inefficiencies caused largely by transportation bottlenecks.
“The South West has enormous economic potential, but transportation inefficiencies continue to increase the cost of doing business. Rail provides an opportunity to address these challenges in a more integrated, scalable and sustainable way,” he said.
He noted that the rail initiative is expected to reduce logistics costs, improve freight efficiency, strengthen agricultural market access, boost export competitiveness, expand industrial activities, enhance passenger mobility and create jobs across several sectors of the economy.
The SWDC boss further explained that by operating directly on NRC corridors, the commission intends to provide manufacturers, farmers, exporters, fast-moving consumer goods companies and logistics operators with a more reliable alternative to road haulage.
He said the move would help ease pressure on major highways while reducing delays associated with the movement of goods and passengers across the region.
Akinola added that improved rail integration would also strengthen connectivity between Apapa and Tin Can ports and major industrial, agricultural and commercial hubs in the South West.
Under the initiative, agricultural produce and manufactured goods are expected to move more efficiently between production centres, warehouses, markets and export terminals, while corridor-based economic zones are projected to stimulate investment, warehousing, agro-processing and small and medium-scale enterprise growth.
He disclosed that the implementation framework would be partnership-driven, with the commission opening the initiative to collaborations involving state governments, private investors, logistics operators and international infrastructure partners.
The rail project is the latest in a series of flagship regional transformation programmes being championed by the commission following the launch of TransComs, a cluster-based development initiative aimed at transforming rural communities into integrated economic hubs through agriculture, housing, logistics, enterprise development and youth employment.
According to Akinola, both initiatives form part of SWDC’s broader vision of building a more connected, productive and economically integrated South West under its ‘One Bloc Economy’ framework.
