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Home»Environment/Climate Change»Nigeria moves to modernize rail, cut logistics costs
Environment/Climate Change

Nigeria moves to modernize rail, cut logistics costs

EditorBy EditorSeptember 24, 2025Updated:September 24, 2025No Comments4 Mins Read
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The Federal Government has announced new plans to improve Nigeria’s transport system. These plans include upgrading railway networks, improving connections between different types of transport, and reducing the high cost of moving goods, which has been hurting trade and the economy.

At the 2025 Nigeria Transport Sector Summit in Lagos, the Minister of Transportation, Senator Said Ahmed Alkali, said President Bola Tinubu’s government is focused on rebuilding the country’s transport system to make it safer, more affordable, and better connected.

Represented by Dr Kayode Opeifa, the Managing Director of the Nigerian Railway Corporation (NRC), the Minister said major railway projects are making progress. These include the Lagos–Kano standard gauge railway, the repaired Lagos–Kano narrow gauge line, and the Port Harcourt–Maiduguri line. The Port Harcourt to Aba section is already in use.

The Kaduna–Kano and Kano–Maradi railway lines have also seen good progress. The Kaduna–Kano line is now over 50% complete, and the Kano–Maradi line is over 60% done. The track is expected to reach Katsina by December 2025 and be finished by March 2027.

Alkali also said that the government has approved the construction of modern bus terminals in Abeokuta, Onitsha, Warri, Kano, Lokoja, and Gombe. This is to reduce the disorder at parks and ease traffic within cities.

He highlighted training programs at the Federal University of Transportation in Daura and the Nigerian Institute of Transport Technology (NITT) in Zaria. Over 6,000 professionals were trained in 2024. Also, 12 new centers for converting vehicles to use Compressed Natural Gas (CNG) have been set up to support cheaper, cleaner transport.

The Minister also announced that Nigeria now has a National Land Transport Policy. This long-awaited plan will help guide the development of road, rail, and urban transport systems after many years without a clear national policy.

Also speaking at the event, the Minister of Marine and Blue Economy, Mr. Adegboyega Oyetola, said the government is making it a priority to connect different transport systems to improve logistics across the country.

He gave examples such as the Lagos–Ibadan railway that now moves containers directly from Apapa Port, more barge services from Lagos and Onne ports, the upgraded Apapa–Oshodi Expressway, a new 27km road to Lekki Port, and dry ports in Ibadan, Kaduna, Kano, and Funtua.

Oyetola also revealed a new National Policy on Marine and Blue Economy. This plan aims to reduce transport costs, bring in private investment, and make Nigeria part of the global shift to smarter, greener transport systems.

He said every container moved smoothly from the port to the inland areas not only improves efficiency but also helps create jobs and increase revenue.

Meanwhile, NRC boss Dr Kayode Opeifa gave a warning about the economy. He said in 2024, the logistics sector only made up 3.73% of Nigeria’s GDP. Rail and sea transport together made up less than 0.33%, despite Nigeria’s large population and important location.

He explained that most goods (over 80%) still move by road, even though less than 20% of the roads are in good shape. This poor setup leads to big economic losses.

Opeifa said that expanding freight rail, involving the private sector, and bringing back inland waterways could cut transport costs by up to 40%. This would help Nigeria benefit from the African Continental Free Trade Area (AfCFTA) and support industries like car assembly and steel production.

He said Nigeria’s future success won’t depend only on oil, but also on the roads, railways, and ports it builds—and the economic growth that comes when the transport system works properly.

Earlier, the Chairman of the Transport Correspondents Association of Nigeria (TCAN), Mr. Tola Adenubi, said the country’s transport system is still unbalanced. Too much reliance on road transport has damaged highways and put people at risk.

He mentioned the danger of falling containers, regular boat accidents, and the neglect of barge services, which could help reduce traffic and lower transport costs.

He added that even after 65 years of independence, Nigeria still doesn’t have a proper set of rules to manage its entire transport system. He urged the government to enforce the 2023 Inland Waterways Transportation Code and invest more in safer rail and water transport options.

2025 Nigeria Transport Sector Summit Federal government Nigeria’s transport system NRC Railway
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