South West Commission Cleared for Rail Operations

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

Addressing journalists in Ibadan yesterday, the managing director/CEO of SWDC, Dr Charles’ Diji’ Akinola, described the development as a major transition from planning to implementation, saying it marks a major step toward strengthening regional connectivity and driving economic transformation across the region.

This license is not for building new rail lines, but for operating passenger and freight services on existing rail corridors that already connect communities, businesses, industrial hubs, and economic centres across the South West.

The license authorised the commission to operate on both narrow and standard gauge rail networks and supports the launch of the South West Rail, Agro-Industrial and 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.

Akinola said, “This license 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.”

The SWDC boss explained that the SW-RAIL Platform was 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, the South West remains Nigeria’s largest economic bloc but continues to face major 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, strengthen agricultural market access, boost export competitiveness, expand industrial activity, improve passenger mobility, and create jobs across multiple sectors.