The South-West Development Commission said its newly awarded rail licence will allow it to operate services on existing railway lines, not build new ones.
The clarification came after confusion about the scope of the licence, which the commission secured to manage rail operations in the South-West region. SWDC officials explained that the licence grants them the right to run trains and manage passenger and freight services on tracks already in place across states like Lagos, Oyo, Ogun, Osun, Ondo, and Ekiti.
This distinction matters because Nigeria has long struggled with railway infrastructure expansion. The federal government has prioritised rehabilitating and upgrading existing lines rather than laying entirely new tracks, a process that requires massive capital investment and years of planning. SWDC's role therefore sits within that framework, focusing on operational efficiency rather than physical expansion of the rail network.
The commission's move signals confidence in the existing South-West rail infrastructure and a bid to improve service delivery on routes that have been underutilised or poorly managed. Officials said they would work to make rail travel more reliable and attractive to commuters and shippers in the region, competing with road transport that currently dominates freight and passenger movement.
SWDC did not specify a timeline for beginning operations or the investment it plans to put into upgrading facilities on the existing lines. The commission will need to coordinate with the Nigerian Railway Corporation, which owns the tracks, and comply with regulations set by the Federal Ministry of Transportation.
