Nigeria needs $575b to bridge investment gap in transport sector – ICRC DG

The Director General of the Infrastructure Concession Regulatory Commission (ICRC), Dr. Jobson Oseodion Ewalefoh, has said that the country requires about $545 billion to bridge investment gap in the transportation sector.

The DG, who disclosed this during a paper presentation at the Second International Railway Conference on Tuesday, emphasised that only the strategic mobilisation of private capital through Public-Private Partnerships (PPPs) can deliver the railway system Nigeria needs for the 21st century.

He said, “Our annual budgets have consistently fallen short of the $100 billion required to close the infrastructure gap. Without private sector involvement, rail development will remain underfunded and inadequate.”

The DG emphasised that railways are crucial to reducing logistics costs, facilitating regional trade under the AfCFTA, and advancing Nigeria’s climate commitments. However, he warned that achieving these outcomes will require bold reforms to railway policy, aligning it with global shifts in urbanisation, climate change, technology, and resilience.

Drawing lessons from India, Hong Kong, Brazil, and Europe, Dr. Ewalefoh argued that private-sector-led reforms, supported by clear regulation, have consistently repositioned rail as a competitive and sustainable transportation mode.

He provided examples of Nigeria’s standard-gauge projects (Abuja–Kaduna, Lagos–Ibadan, and Warri–Itakpe) and the concessioned e-ticketing system as evidence of PPP success.

He, however, noted that challenges persist in financing, freight underutilisation, and security, which threaten to undermine progress.

To reposition Nigeria’s railways, Dr. Ewalefoh outlined a five-pillar policy agenda, which includes legal and institutional reforms, such as the unbundling of the Nigerian Railway Corporation, as well as financing innovation through viability gap funding, infrastructure bonds, and pension fund investments.

Others, according to him, include corridor prioritisation, with a focus on the Lagos–Kano and Port Harcourt–Maiduguri freight routes, operational efficiency through digital technology, and rolling stock leasing and integration with climate goals and urban transit systems.

He stated that the transport sector requires $575 billion investment in the next two decades, which can only be delivered by private capital, mobilised through well-structured PPPs.

“The decisions we make today will determine whether rail becomes the backbone of our national transformation or remains another missed opportunity,” he said.

The Minister of Transport, Sa’id Alkali, in his remarks, noted that the conference aimed to assemble railway experts, industry players, and other stakeholders to share knowledge and experience across jurisdictions on emerging trends, funding opportunities, and prospects for railway services as a catalyst for national development.

He stated, “This discussion will maximise the potential of the railway sub-sector as a viable option for boosting commerce through geographical mobility and general economic growth through connectivity and collaborations.”

Alkali disclosed that railway development services have been moved from the exclusive list to the concurrent list to create opportunities for state and private sector participation, maximising the potential of railway transport as an enabler of economic growth and connector of regional hopes.

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