The South West Development Commission (SWDC) has secured a provisional rail operating and track access licence from the Nigerian Railway Corporation (NRC), marking a major milestone in efforts to improve regional transportation and economic integration across the South West.
The licence authorises the commission to operate passenger and freight rail services on existing rail corridors across Lagos, Ogun, Oyo, Osun, Ondo and Ekiti states. However, it does not permit the construction of new rail lines.
The approval allows the SWDC to run services on both narrow and standard gauge rail networks under its proposed South West Rail, Agro-Industrial and Logistics (SW-RAIL) Platform.
Speaking with journalists in Ibadan on Thursday, the Managing Director and Chief Executive Officer of the commission, Charles ‘Diji’ Akinola, described the development 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,” he said.
According to him, the initiative is designed to improve logistics efficiency, expand agro-industrial growth, strengthen mobility and accelerate economic development across the region.
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Akinola explained that the SW-RAIL Platform would integrate freight systems, agro-logistics, industrial parks, inland logistics hubs, cold-chain infrastructure, port connectivity, passenger mobility systems and transit-oriented developments.
He noted that despite being Nigeria’s largest economic bloc, the South West continues to face transportation bottlenecks, rising freight costs 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 added.
The commission said the rail initiative is expected to reduce logistics costs, improve freight movement, expand market access for farmers and manufacturers, strengthen export competitiveness and create jobs across several sectors.
SWDC also stated that the rail services would provide manufacturers, exporters, agro-processors and logistics operators with a reliable alternative to road transportation, thereby reducing pressure on major highways.
The commission added that improved rail connectivity would strengthen links between Apapa and Tin Can ports and major industrial and agricultural hubs across the South West.
The initiative follows the recent launch of TransComs, SWDC’s cluster-based development model aimed at transforming rural communities into integrated economic hubs through agriculture, housing, logistics, enterprise development and youth employment.
According to the commission, both initiatives form part of its broader “One Bloc Economy” vision designed to promote a more connected, productive and economically integrated South West region.
