Opeifa Targets 10,000km Railway Network in Five Years, Sees Integrated Transport as Key to Economic Growth

The Managing Director of the Nigerian Railway Corporation (NRC), Dr Kayode Opeifa, has said Nigeria must develop an integrated transportation and logistics system, with rail playing a central role, to strengthen economic competitiveness, reduce the cost of doing business and accelerate national development.

Opeifa disclosed that the corporation was targeting an expansion of the country’s railway network from approximately 4,000 kilometres to 10,000 kilometres within five years, with a long-term ambition of increasing the network to about 20,000 kilometres.

He made this known while speaking on the theme, “Scaling the Future: Building a Resilient and Efficient Mobility and Logistics Ecosystem in Nigeria,” at the BusinessDay Mobility and Logistics Conference held at Four Points by Sheraton, Victoria Island, Lagos.

The NRC managing director identified the absence of effective coordination among the various modes of transportation as one of the factors undermining Nigeria’s economic productivity, noting that inefficiencies across the transport network contribute to congestion, higher logistics costs, delayed deliveries, reduced business productivity and increased prices of goods and services.

He argued that an integrated transport system capable of connecting production centres, seaports, industrial clusters, inland terminals and consumption markets would significantly improve the movement of people and goods while strengthening the country’s economic resilience.

According to him, rail transportation occupies a strategic position in achieving this objective because of its capacity to move large volumes of passengers and freight over long distances, reduce pressure on highways and facilitate connections between major economic centres.

Opeifa stressed that Nigeria could not achieve an efficient transportation ecosystem if road, rail, maritime and air transport operators continued to function as competing entities rather than complementary components of a national mobility and logistics network.

“Rail should not be viewed as a competitor to road, maritime or air transportation, but each should continue to develop as complementary components of an effective integrated transport system,” he said.

He explained that while road transportation remained indispensable for cargo collection, distribution and last-mile delivery, maritime transport provided the country’s connection to international trade, while inland terminals supported cargo handling and distribution.

Rail, he added, could provide the high-capacity link connecting these facilities to industrial and commercial centres across the country.

The NRC boss maintained that seamless coordination among the different transportation modes would reduce avoidable logistics expenses, improve access to markets, promote regional commerce and make Nigerian products more competitive.

He said the corporation was pursuing several reforms and operational strategies to reposition the railway sector, including its track access policy, which provides opportunities for private investors to operate passenger and freight services along designated railway corridors.

Under the policy, private-sector participation is expected to complement government investment, expand railway services and improve the utilisation of existing infrastructure.

Opeifa also outlined the NRC’s Vision 2:5:10:20, a development framework focused on optimising existing railway assets, rehabilitating viable dormant corridors, expanding freight operations, strengthening private-sector partnerships and progressively extending the national railway network.

“Our ambition is to consistently grow the networks from approximately 4,000 kilometres that we met, to 10,000 kilometres within five years and ultimately achieving about 20,000 kilometres over the long term.

“These are no doubt strategic targets that require sustained investment and implementation,” he said.

He explained that the immediate priorities included improving the utilisation of the country’s two legacy narrow-gauge lines and three standard-gauge lines, restoring operational capacity, expanding freight services and strengthening connections between railway infrastructure, seaports and inland terminals.

According to him, maximising the capacity of existing railway assets would provide an important foundation for the planned expansion of the national network, while improving the corporation’s contribution to freight transportation and economic activities.

Highlighting railway infrastructure projects under President Bola Tinubu’s administration, Opeifa disclosed that efforts were ongoing to extend the standard-gauge railway to Apapa Port and establish a connection to Tin Can Island Port in Lagos.

The proposed connections are expected to strengthen the relationship between railway and maritime transportation, particularly in the movement of containers and other cargo from the nation’s major seaports to inland destinations.

He said the development would improve freight evacuation, reduce dependence on road haulage and address some of the logistical difficulties associated with cargo movement around Lagos ports.

The NRC managing director also disclosed that the Kano-Maradi railway project was expected to be completed in 2027.

He further identified plans for a central railway corridor linking the Warri-Itakpe railway line to Abuja as part of efforts to expand the country’s rail connectivity and improve transportation links between different regions.

Other projects and initiatives highlighted included the planned commencement of construction of the Marina-Lekki railway line, support for the Kaduna-Kano inter-state train service and efforts to facilitate the Kano State Government’s proposed intra-state railway services.

He said the projects were designed to improve passenger mobility, expand freight transportation opportunities and strengthen the role of rail in Nigeria’s national transportation network.

Also speaking at the conference, the Director-General of the Africa Centre for Supply Chain (ACSC), Dr Obiora Madu, warned that Nigeria’s small-scale businesses and logistics operators would continue to struggle without effective integration of the country’s transportation and supply chain systems.

Madu estimated that Nigeria loses more than N3.6 trillion to inefficiencies and distortions in the transportation and logistics sector, arguing that poor connectivity and fragmentation across the industry were undermining the performance of businesses.

He maintained that developing an efficient logistics ecosystem required more than investing in individual infrastructure projects, stressing the importance of ensuring that the different components of the transportation network worked together.

“If we don’t get the logistics right, the small-scale businesses would not be optimised. We do not need digital islands, we do not need superlative infrastructure, what we need is connected systems,” he said.

He argued that the country’s logistics development strategy should prioritise connectivity, coordination and the capacity of the entire system to withstand disruptions rather than concentrating exclusively on isolated infrastructure investments.

According to him, effective integration would create opportunities for businesses across the supply chain, particularly small and medium-sized enterprises that depend heavily on efficient transportation and distribution networks to move their products.

Similarly, the Managing Director of JanksMay Global Services Limited, Ifeanyi Onwuachu, identified infrastructure deficits as a major challenge confronting small-scale operators in the logistics industry.

He said the difficulties experienced by operators underscored the need for improved infrastructure, stronger transport connections and more efficient logistics arrangements to support business operations.

Earlier, in his welcome address, the Deputy Editor-in-Chief of BusinessDay, Dr Innocent Nna, described the conference as an important platform for examining the persistent challenges confronting Nigeria’s mobility and logistics sector.

Nna urged industry stakeholders to engage in frank discussions on the structural gaps affecting transportation and logistics operations, while identifying practical solutions capable of improving efficiency and supporting economic development.

The conference brought together stakeholders across the transportation and logistics industries to examine strategies for building a more integrated, efficient and resilient mobility ecosystem.

The discussions centred on the need for improved infrastructure, stronger collaboration among transport operators, private-sector investment and effective coordination of the different modes of transportation to reduce logistics costs and enhance the competitiveness of Nigerian businesses.

Save my name, email, and website in this browser for the next time I comment.

Independent Newspapers Limited, registered on July 17, 2001 (RC No: 419927), commenced publication on October 1, 2001. With registered office at 15b, Daranijo Street, off Odusami street, off Wemco road, Ogba, Ikeja