South West Commission Gets Rail Licence For Regional Transport Services

The South West Development Commission (SWDC) has secured a provisional rail operating and track access licence from the Nigerian Railway Corporation (NRC), paving the way for passenger and freight rail services across existing rail corridors in the South West.

The development marks a significant step toward improving regional connectivity and deepening economic integration across the region.

The licence does not permit the construction of new rail lines but authorises the commission to operate passenger and freight services on existing rail corridors linking communities, industrial hubs, businesses and economic centres across the South West.

Under the arrangement, the SWDC is authorised to operate on both narrow and standard gauge rail networks as part of the proposed South West Rail, Agro-Industrial and Logistics (SW-RAIL) Platform.

The regional initiative is aimed at improving logistics competitiveness, expanding agro-industrial growth, strengthening mobility and accelerating economic development across Lagos, Ogun, Oyo, Osun, Ondo and Ekiti states.

Addressing journalists in Ibadan on Thursday, the Managing Director and Chief Executive Officer of SWDC, Dr. Charles ‘Diji’ Akinola, described the approval as a transition from planning to 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,” Akinola added.

He explained that the SW-RAIL Platform was conceived as a rail-driven economic corridor integrating freight systems, agro-logistics, industrial parks, inland logistics hubs, cold-chain infrastructure, port connectivity, passenger mobility systems and transit-oriented developments.

According to him, the South West remains Nigeria’s largest economic bloc but continues to struggle with logistics bottlenecks, rising freight costs, congestion and supply chain inefficiencies.

“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.

The initiative is expected to reduce logistics costs, improve freight efficiency, expand agricultural market access, strengthen export competitiveness and create jobs across multiple sectors.

SWDC said the rail operations would provide manufacturers, farmers, exporters, FMCG firms and logistics operators with a more reliable alternative to road transportation, thereby reducing pressure on major highways and improving movement of goods and passengers.

The commission added that improved rail integration would strengthen connectivity between Apapa and Tin Can ports and major industrial, agricultural and commercial hubs across the South West.

Agricultural produce and manufactured goods are also expected to move more efficiently between production centres, markets, warehouses and export terminals, while corridor-based economic zones are projected to stimulate investment, agro-processing, warehousing and SME growth.

Akinola said implementation of the initiative would be partnership-driven and open to collaboration with state governments, private investors, logistics operators and international infrastructure partners.

The rail initiative follows the recent launch of TransComs, SWDC’s cluster-based development model focused on transforming rural communities into integrated economic hubs through agriculture, housing, enterprise development, logistics and youth employment.

According to the commission, both programmes form part of its broader “One Bloc Economy” vision aimed at building a more connected, productive and economically integrated South West region.