The South West Development Commission has secured a provisional rail operating and track access licence from the Nigerian Railway Corporation, opening the door for passenger and freight rail services across existing rail corridors in the South-West.
The move marks a major step toward improving regional connectivity, reducing logistics costs and driving economic growth across the region.
SWDC Moves From Planning to Implementation
Managing Director and Chief Executive Officer of the SWDC, Charles Akinola, announced the development on Thursday in Ibadan, Oyo State.
He described the licence as a transition from planning to execution.
Akinola clarified that the licence does not cover the construction of new rail lines. Instead, it allows the commission to operate passenger and freight services on existing rail corridors across the South-West.
The rail services will connect communities, industrial hubs, businesses and economic centres across Lagos, Ogun, Oyo, Osun, Ondo and Ekiti states.
Rail Platform to Drive Economic Growth
According to Akinola, the licence authorises the commission to operate on both narrow and standard gauge rail networks.
He said the approval also supports the launch of the South-West Rail, Agro-Industrial and Logistics Platform, also known as SW-RAIL.
The initiative aims to improve logistics efficiency, support agro-industrial growth and strengthen mobility across the region.
“This license is not just a document. It is the green light to rebuild the Southwest’s economic spine on rail,” Akinola said.
“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.”
South-West Faces Logistics Challenges
Akinola said the South-West remains Nigeria’s largest economic bloc but continues to face serious transportation and supply chain problems.
He noted that rising freight costs, congestion and logistics inefficiencies continue to increase the cost of doing business across the region.
“The South-West has enormous economic potential, but transportation inefficiencies continue to increase the cost of doing business,” he said.
He added that rail transportation offers a more scalable and sustainable solution to the region’s logistics problems.
Project to Support Trade and Agriculture
The SWDC boss explained that the SW-RAIL Platform will function as a rail-driven economic corridor.
The project will integrate freight systems, agro-logistics, industrial parks, inland logistics hubs, cold-chain infrastructure and port connectivity.
It will also support passenger mobility systems and transit-oriented developments.
According to Akinola, the initiative will reduce logistics costs, improve freight movement and strengthen access to agricultural markets.
He said the project would also boost export competitiveness, support industrial expansion and create jobs across multiple sectors.
Rail Services to Ease Pressure on Highways
Akinola stated that manufacturers, exporters, farmers and logistics companies would gain access to a more reliable transport alternative through the rail system.
He said the initiative would reduce pressure on major highways and cut delays in the movement of goods and passengers.
The improved rail integration will also strengthen links between Apapa and Tin Can ports and key industrial and agricultural centres across the South-West.
He added that better connectivity would improve the movement of farm produce and manufactured goods between production centres, warehouses, markets and export terminals.
SWDC Seeks Partnerships for Expansion
Akinola said the implementation model would rely heavily on partnerships with state governments, private investors, logistics firms and international infrastructure partners.
He added that the rail initiative forms part of the commission’s broader regional development strategy.
The project follows the launch of TransComs, a cluster-based development model designed to transform rural communities into integrated economic hubs.
According to him, both programmes support the commission’s vision of building a more connected and economically integrated South-West region under its “One Bloc Economy” framework.
