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Opeifa pushes for unified rail-road network to cut transport costs

The Managing Director of the Nigerian Railway Corporation (NRC), Dr Kayode Opeifa, has called for stronger integration of rail,

Dr Kayode Opeifa
Managing Director of the corporation, Dr Kayode Opeifa

The Managing Director of the Nigerian Railway Corporation (NRC), Dr Kayode Opeifa, has called for stronger integration of rail, road and maritime transportation to reduce logistics costs, ease highway congestion and improve the movement of passengers and goods across Nigeria.

Opeifa said an efficient, interconnected transport network was essential to improving mobility, strengthening supply chains and enhancing the competitiveness of Nigerian businesses.

He made the call 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 in Lagos.

According to him, gaps in the country’s transportation network contributed to traffic congestion, delayed deliveries, rising distribution costs and higher prices of goods and services.

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He explained that rail transportation could ease pressure on highways by moving large volumes of passengers and freight over long distances, while providing connections between seaports, industrial hubs, inland terminals and urban centres.

The NRC chief stressed that rail should complement, rather than compete with, other transportation modes, noting that road transport remained vital for cargo collection and last-mile delivery, while maritime transport connected Nigeria to international markets.

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He said better coordination among the different modes would improve cargo movement, reduce avoidable transport expenses and expand businesses’ access to markets.

“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.

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Opeifa identified improved freight services and stronger connections between railway infrastructure, ports and inland terminals as key priorities for developing a more efficient transport network.

He said the NRC’s track access policy was designed to create opportunities for private investors to operate passenger and freight services along designated railway corridors.

He also outlined the corporation’s Vision 2:5:10:20, which focuses on optimising existing railway assets, reviving viable dormant corridors, expanding freight operations, attracting private-sector investment and extending the national railway network.

According to him, the corporation aimed to expand Nigeria’s railway network from approximately 4,000 kilometres to 10,000 kilometres within five years, with a long-term target of about 20,000 kilometres.

Meanwhile, the Director-General of the Africa Centre for Supply Chain (ACSC), Dr Obiora Madu, said Nigeria’s logistics challenges would continue to constrain small businesses unless transportation networks were better connected.

Madu estimated that the country loses more than N3.6 trillion to inefficiencies and distortions in the transportation and logistics sector, warning that infrastructure investments would deliver limited benefits without effective coordination.

“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.

Also, the Managing Director of JanksMay Global Services Ltd., Ifeanyi Onwuachu, said infrastructure deficits continued to undermine the operations of small-scale logistics businesses.

He called for better infrastructure and more efficient transport connections to help operators move goods reliably and reduce operational difficulties.

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