SWDC Secures Rail Licence to Drive Regional Economic Transformation

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). The licence allows SWDC to run passenger and freight services on existing rail corridors throughout the Southwest, marking a significant step toward improving regional connectivity and stimulating economic growth.

The Commission clarified that the licence does not authorize the construction of new rail lines; instead, it permits the operation of services on the current network that already links communities, businesses, industrial hubs, and economic centres across the South West.

Authorized to operate on both narrow and standard gauge networks, the licence supports the launch of the South‑West Rail, Agro‑Industrial & Logistics (SW‑RAIL) platform. This regional initiative aims to enhance logistics competitiveness and unlock agro‑industrial growth, thereby strengthening mobility and accelerating development in Lagos, Ogun, Oyo, Osun, Ondo, and Ekiti States.

Speaking to journalists in Ibadan, Oyo State, last Thursday, SWDC Managing Director and CEO Dr. Charles ‘Diji’ Akinola described the licence as a 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,” 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 Southwest.”

Akinola also explained that the SW‑RAIL platform is being developed as a rail‑anchored economic corridor. It will 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 while the Southwest remains Nigeria’s largest economic bloc, it still faces 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.

By operating directly on NRC corridors, SWDC aims to offer manufacturers, farmers, exporters, FMCG companies, and logistics operators a more reliable alternative to road haulage. This should ease pressure on major highways and reduce delays in the movement of goods and people.

The improved rail integration will also 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 centres, 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 will be partnership‑driven, welcoming collaboration with state governments, private investors, logistics operators, and international infrastructure partners.

The rail initiative is another flagship regional transformation programme for SWDC, following the launch of TransComs. TransComs is a cluster‑based development model that seeks to transform 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.