The South West Development Commission on Thursday secured a provisional rail operating and track access licence from the Nigerian Railway Corporation, paving the way for SWDC-led passenger and freight rail services across existing rail corridors in the South-West.

The development marks a major step towards improving regional connectivity and driving economic transformation across the region.

The Managing Director/Chief Executive Officer of SWDC, Charles Akinola, disclosed this in Ibadan, the Oyo State capital, while addressing journalists. He described the development as a significant transition from planning to implementation.

Akinola explained that the licence was not for the construction of new rail lines, but for operating passenger and freight services on existing rail corridors linking communities, businesses, industrial hubs, and economic centres across the South-West.

He said, “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 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.”

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 still faces serious 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.

Akinola stated that the initiative was expected to reduce logistics costs, improve freight efficiency, strengthen agricultural market access, boost export competitiveness, expand industrial activities, improve passenger mobility, and create jobs across several sectors.

He 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.”

Akinola noted that the implementation model would be partnership-driven and open to collaboration with state governments, private investors, logistics operators, and international infrastructure partners.

He added that the rail initiative was another flagship regional transformation programme of the SWDC following the launch of TransComs, a cluster-based development model designed 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,” he stated.