Segun Atanda/
The South West Development Commission (SWDC) has secured a provisional rail operating and track access licence from the Nigerian Railway Corporation.
The development is expected to significantly strengthen regional transportation, commerce and economic integration across the South-West.
The licence, granted on Thursday, clears the way for the commission to commence passenger and freight rail services along existing rail corridors within the region, marking a major milestone in efforts to improve connectivity and unlock broader economic opportunities.
Speaking in Ibadan, Oyo State, the Managing Director and Chief Executive Officer of SWDC, Charles Akinola, described the approval as a transition from planning to implementation.
Akinola explained that the licence was focused on operating services on existing rail infrastructure rather than constructing new rail lines.
According to him, the initiative is designed to connect communities, businesses, industrial clusters and economic centres across the South-West.
He said, “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 & Logistics 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.
“This license 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 South West.”
He further explained that the South-West Rail, Agro-Industrial and Logistics Platform, known as SW-RAIL, is being developed as a rail-driven economic corridor that will integrate freight operations, agro-logistics systems, industrial parks, inland logistics hubs, cold-chain infrastructure, port connectivity, passenger mobility and transit-oriented developments.
According to Akinola, the South-West remains Nigeria’s largest economic bloc but continues to face transportation and logistics challenges that increase the cost of doing business and limit supply chain efficiency.
“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.
He noted that the initiative is expected to reduce logistics costs, improve freight movement, strengthen agricultural market access, enhance export competitiveness, stimulate industrial activities, improve passenger transportation and create employment opportunities across multiple sectors.
Akinola said, “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.
“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.”
He added that the implementation model would be driven through partnerships with state governments, private investors, logistics operators and international infrastructure partners.
Akinola also described the rail project as another major regional transformation initiative by the commission, following the launch of TransComs, a cluster-based development model aimed at 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,” he stated.
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