Chinedu Eze
The South West Development Commission (SWDC) has announced that it has secured a provisional rail operating and track access licence from the Nigerian Railway Corporation (NRC), paving the way for SWDC-led passenger and freight rail services across existing rail corridors in the Southwest and marking a major step toward strengthening regional connectivity and driving economic transformation across the region.
In other words, the Commission will use the existing rail infrastructure in the region to start rail service, moving passengers to different destinations in the region with rail links.
The Commission explained that the licence it obtained was not to build new rail lines, but to operate passenger and freight services on existing rail corridors already connecting communities, businesses, industrial hubs, and economic centres across the South West.
The license authorized the Commission to operate on both narrow and standard gauge rail networks and supports the launch of the South-West Rail, Agro-Industrial & Logistics (SW-RAIL) platform, a regional initiative aimed at improving logistics competitiveness, unlocking agro-industrial growth.
Strengthening mobility, and accelerating economic development across Lagos, Ogun, Oyo, Osun, Ondo, and Ekiti States.
Addressing journalists in Ibadan, Oyo State, last Thursday, the Managing Director/CEO of SWDC, Dr. Charles ‘Diji’ Akinola, described the development as a major transition from planning to implementation.
“This licence is not just a document. It is the green light to rebuild the Southwest’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 Southwest,” Akinola said.
The SWDC boss also explained that the SW-RAIL platform is being developed as a rail-anchored 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, Southwest remains Nigeria’s largest economic bloc but continues to face major logistics bottlenecks, rising freight costs, congestion, and supply chain inefficiencies.
“The Southwest 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 added.
The initiative is expected to reduce logistics costs, improve freight efficiency, strengthen agricultural market access, boost export competitiveness, expand industrial activity, improve passenger mobility, and create jobs across multiple sectors.
The Commission further explained that by operating directly on NRC corridors, the SWDC aims to provide manufacturers, farmers, exporters, FMCG companies, and logistics operators with a more reliable alternative to road haulage, easing pressure on major highways and reducing delays in the movement of goods and people.
It also noted that the improved rail integration will strengthen connectivity between Apapa and Tin Can ports and key industrial, agricultural, and commercial hubs across the Southwest. Agricultural produce and manufactured goods will move more efficiently between production centers, markets, warehouses, and export terminals, while corridor-based economic zones are expected to stimulate investment, warehousing, agro-processing, and SME growth.
Akinola stated that the implementation model would be partnership-driven, pointing out that it will be open to collaboration with state governments, private investors, logistics operators, and international infrastructure partners.
The rail initiative is another of SWDC’s flagship regional transformation programmes following the launch of TransComs, a cluster-based development model focused on transforming rural communities into integrated economic hubs through agriculture, housing, enterprise development, logistics, and youth employment.
Together, both initiatives form part of the commission’s broader vision of building a more connected, productive, and economically integrated South-west region under a ‘One Bloc Economy’ framework.
