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Dr Kayode Opeifa

The Managing Director of the Nigerian Railway Corporation (NRC), Dr Kayode Opeifa, has unveiled plans to expand Nigeria’s railway network from approximately 4,000 kilometres to 10,000 kilometres within five years as part of efforts to improve freight movement, reduce logistics costs and boost economic competitiveness.

Opeifa disclosed this at the BusinessDay Mobility and Logistics Conference held at Four Points by Sheraton, Victoria Island, Lagos, where he identified an integrated transportation system as critical to strengthening Nigeria’s economic resilience and supporting business growth.

Speaking on the theme, “Scaling the Future: Building a Resilient and Efficient Mobility and Logistics Ecosystem in Nigeria,” he said inefficiencies in the country’s transport network continued to contribute to congestion, rising logistics costs, delayed deliveries, reduced productivity and higher prices of goods and services.

According to him, developing a connected transport system, with rail playing a central role, would improve the movement of people and goods while strengthening links between seaports, industrial clusters, inland terminals and urban centres.

He explained that rail transportation offers high-capacity services for long-distance passenger and freight movement, reduces pressure on highways and improves access to markets.

Opeifa stressed that road, rail, maritime and air transportation should complement one another rather than operate as competing systems.

“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 noted that while road transport remained essential for cargo collection and last-mile delivery, maritime transport connected Nigeria to international markets, while inland terminals facilitated cargo handling and distribution.

Rail, he added, could provide the high-capacity link connecting these facilities to production and consumption centres.

Opeifa said effective coordination among the various transport modes would reduce avoidable logistics expenses, promote regional trade and improve the competitiveness of Nigerian products.

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Outlining the NRC’s strategic direction, the managing director said the corporation’s Vision 2:5:10:20 focused on optimising existing railway assets, restoring viable dormant corridors, expanding freight operations, strengthening private-sector partnerships and progressively extending the national network.

He said the corporation was also implementing a track access policy designed to create opportunities for private investors to operate passenger and freight services along the country’s railway corridors.

“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,” he said.

He acknowledged that achieving the targets would require sustained investment and effective implementation.

According to him, immediate priorities include 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.

Opeifa said maximising existing assets would help improve railway services while laying the foundation for future expansion.

On ongoing and planned infrastructure projects, he said efforts were being made to extend the standard-gauge railway to Apapa Port and establish a connection to Tin Can Island Port to improve cargo movement and strengthen links between rail and maritime transport.

He added that the Kano–Maradi railway line was expected to be completed in 2027, while plans were underway to develop a central railway corridor connecting the Warri–Itakpe line to Abuja.

The government, he said, also planned to commence construction of the Marina–Lekki railway line, alongside efforts to support the Kaduna–Kano inter-state train service and proposed intra-state rail services by the Kano State Government.

The projects, he noted, were part of broader efforts to improve passenger mobility, expand rail connectivity and facilitate the movement of goods across the country.

Meanwhile, the Director-General of the Africa Centre for Supply Chain (ACSC), Dr Obiora Madu, said Nigeria’s failure to integrate its transportation and logistics networks was undermining the operations of small-scale businesses.

Madu estimated that the country loses more than N3.6 trillion to inefficiencies and distortions in the transportation and logistics sector, warning that small businesses would continue to struggle without a connected and efficient system.

“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 developing a resilient logistics ecosystem required more than expanding individual transport infrastructure, stressing the need for stronger coordination, connectivity and the capacity to withstand disruptions.

Similarly, the Managing Director of JanksMay Global Services Ltd., Ifeanyi Onwuachu, said infrastructure deficits continued to pose challenges for small-scale operators in the logistics industry.

He called attention to the need for improved infrastructure and more efficient transport connections to support business operations.

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

Nna urged industry stakeholders to engage in frank discussions and develop practical solutions to improve efficiency across the country’s transport and logistics networks.

The conference brought together industry stakeholders to explore strategies for building an integrated and resilient mobility and logistics ecosystem capable of supporting economic growth and improving the competitiveness of Nigerian businesses.