The Nigerian Railway Corporation has warned that inefficiencies in Nigeria\u2019s transportation network are contributing to rising prices of goods and services, as businesses grapple with high logistics costs, congestion and delays in moving products across the country.\n<\/p>\n
The Managing Director of the corporation, Dr Kayode Opeifa, disclosed this at the BusinessDay Mobility and Logistics Conference held at Four Points by Sheraton, Victoria Island, Lagos, according to a statement issued by the NRC on Wednesday.\n<\/p>\n
Speaking on the theme, \u201cScaling the Future: Building a Resilient and Efficient Mobility and Logistics Ecosystem in Nigeria,\u201d Opeifa identified poor connectivity between transportation systems as a major obstacle to economic productivity and competitiveness.\n<\/p>\n
\u201cHe said inefficiencies in the country\u2019s transportation network contribute to congestion, rising logistics costs, delayed deliveries, reduced productivity and higher prices of goods and services.<\/p>\n
\u201cAccording to him, rail transportation occupies a strategic position in developing an efficient national transport network, adding that an integrated system with rail as a key component could translate improved connectivity into greater economic competitiveness and growth,\u201d the statement read.\n<\/p>\n
He advocated greater integration of rail, road, maritime and air transportation to reduce the cost of moving goods between production centres, ports and markets.\n<\/p>\n
\u201cRail 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,\u201d he said.<\/p>\n
Opeifa explained that rail transportation could reduce pressure on highways by providing high-capacity passenger and freight services, particularly over long distances.<\/p>\n
According to him, roads remain essential for cargo collection and last-mile delivery, while maritime transportation connects Nigeria to international markets and inland terminals facilitate distribution.\n<\/p>\n
He maintained that linking these facilities through efficient railway services would reduce avoidable logistics expenses, improve market access and strengthen the competitiveness of Nigerian products.\n<\/p>\n
On railway expansion, the NRC managing director disclosed plans to increase the country\u2019s rail network from approximately 4,000 kilometres to 10,000 kilometres within five years, representing a proposed expansion of 150 per cent.\n<\/p>\n
\u201cOur 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. <\/p>\n
\u201cThese are no doubt strategic targets that require sustained investment and implementation,\u201d he stated.\n<\/p>\n
He said the corporation\u2019s Vision 2:5:10:20 prioritised restoring dormant railway corridors, expanding freight operations, improving existing infrastructure and attracting private investment.<\/p>\n
Opeifa added that the NRC\u2019s track access policy would allow private operators to provide passenger and freight services along railway corridors.\n<\/p>\n
He identified improved utilisation of the two existing narrow-gauge lines and three standard-gauge lines as immediate priorities.\n<\/p>\n
The NRC chief also disclosed that efforts were underway to extend standard-gauge rail services to Apapa Port and establish a connection to Tin Can Island Port.\n<\/p>\n
He said the Kano\u2013Maradi railway was expected to be completed in 2027, while plans were progressing for a central railway corridor linking the Warri\u2013Itakpe line to Abuja.\n<\/p>\n
Other proposed developments include the Marina\u2013Lekki railway, Kaduna\u2013Kano inter-state train services and Kano State\u2019s planned intra-state rail network.\n<\/p>\n
Meanwhile, the Director-General of the Africa Centre for Supply Chain, Dr Obiora Madu, estimated that Nigeria loses more than N3.6tn to inefficiencies and distortions in its transportation and logistics sector.\n<\/p>\n
\u201cIf we don\u2019t 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,\u201d Madu said.<\/p>\n
He argued that infrastructure investments would deliver limited benefits without effective coordination between transportation networks.\n<\/p>\n
Similarly, the Managing Director of JanksMay Global Services Limited, Ifeanyi Onwuachu, said infrastructure deficits continued to undermine the operations of small-scale logistics businesses.\n<\/p>\n
The Deputy Editor-in-Chief of BusinessDay, Dr Innocent Nna, urged industry stakeholders to identify practical solutions to persistent transportation challenges, stressing the need for more efficient logistics systems to support economic growth.\n <\/p>\n
Source: <\/p>\n
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