Rail-Port-Industry Link Critical to Cutting Logistics Costs – NRC 

The Nigerian Railway Corporation has said Nigeria must urgently integrate its rail network with seaports, inland dry ports and industrial centres to cut logistics costs, ease pressure on the highways and make the movement of goods across the country more efficient.

The NRC said a seamless connection between rail lines, ports and major production centres would strengthen the movement of agricultural produce, containers, petroleum products and other bulk cargoes, while reducing the cost and time involved in transporting goods from ports to markets and industries.

The Managing Director/Chief Executive Officer of the NRC, Dr Kayode Opeifa, stated this on Thursday in Lagos in a speech delivered on his behalf at the Transport Correspondents Association of Nigeria conference, stressing that rail, road, maritime, inland waterways and aviation must work as an integrated transportation system if Nigeria is to unlock the full economic benefits of its logistics sector.

The NRC boss also revealed that the corporation had opened the door wider for private investors to participate in the development of freight terminals, logistics hubs, rolling stock and other critical infrastructure as part of efforts to transform Nigeria’s rail system into a major engine of economic growth.

He said stronger private-sector participation was imperative because government alone could not provide the massive investment required to build an efficient and interconnected transportation system capable of lowering logistics costs and boosting economic activities.

Opeifa said Nigeria could no longer afford to develop its transportation modes in isolation, stressing the need to connect rail with seaports, inland dry ports, industrial centres and major economic corridors.

He said such integration would enable rail to play a greater role in moving bulk cargo across the country, while reducing the pressure currently placed on the highways.

According to him, rail has the capacity to move large volumes of passengers and freight over long distances and should therefore become a critical component of Nigeria’s logistics architecture.

He said, “At the Nigerian Railway Corporation, our focus is therefore not only on passenger transportation but also on strengthening freight operations and creating greater connectivity between rail lines, seaports, inland dry ports, industrial centres and major economic corridors.”

The NRC MD identified agricultural produce, petroleum products, containers and other commodities as some of the major categories of cargo that could benefit from a more efficient rail freight system.

He said an effective multimodal transportation network involving rail, road, maritime, inland waterways and aviation would reduce the cost of doing business, improve access to markets and strengthen Nigeria’s competitiveness.

Opeifa also called for a regulatory framework capable of attracting private capital into the transportation sector, particularly in rolling stock, freight terminals, logistics hubs and related infrastructure.

“The future of Nigeria’s transportation sector must also be driven by stronger partnerships. Government alone cannot provide all the infrastructure and investment required,” he said.

The NRC’s position comes amid growing concerns over the high cost of logistics and the burden placed on Nigerian businesses by inefficient movement of goods from ports to markets and production centres.

Opeifa said transportation infrastructure should be viewed not simply as public assets but as critical economic infrastructure capable of stimulating industrial production, trade and employment.

He, however, warned that vandalism and encroachment remained major threats to railway investments, stressing the need for stronger collaboration among government agencies, security organisations, host communities and passengers to protect railway tracks, bridges, signalling systems and other infrastructure.

He said the protection of rail infrastructure must become a collective responsibility if the country was to derive the full economic benefits of ongoing investments in the sector.

The NRC chief executive also stressed the need to make transportation affordable and accessible, noting that improved mobility would provide Nigerians with greater access to jobs, markets, education and economic opportunities.

Opeifa reaffirmed the NRC’s commitment to the Federal Government’s vision of developing a modern, integrated and efficient transportation system capable of supporting the country’s economic aspirations.

He commended TCAN for providing a platform for policymakers, operators, investors, professionals and the media to deliberate on the challenges and opportunities in Nigeria’s transportation sector.

He said sustained investment, innovation, collaboration and effective policy implementation remained essential to building a logistics system capable of unlocking Nigeria’s economic potential.

FG Seeks Private Capital, States’ Support to Transform Nigeria’s Ports

The Federal Government has called for deeper participation by the private sector and subnational governments in financing port infrastructure, operating terminals and deploying technology as part of an ambitious plan to modernise Nigeria’s seaports and cut logistics costs.

Minister of Marine and Blue Economy, Adegboyega Oyetola, made the call on Thursday at the 2026 Transport Industry Summit of the Transport Correspondents Association of Nigeria (TCAN), held at the Radisson Hotel, Ikeja, Lagos.

Oyetola represented by Mr. Paul Garnuwa, Director, Inland Transport Services, NPERA, said the Federal Government could not shoulder the entire financial and operational burden of developing the country’s maritime infrastructure, stressing that sustainable port development required stronger partnerships among the Federal Government, state governments, private investors and other stakeholders.

He said the government was therefore seeking greater private-sector participation in infrastructure financing, terminal operations, technology deployment and logistics services, while also encouraging state governments to participate in the development of new maritime gateways.

The minister disclosed that President Bola Ahmed Tinubu had approved a major modernisation programme covering Apapa and Tin Can Island ports in Lagos, Onne and Rivers ports in Rivers State, Calabar Port in Cross River and Warri Port in Delta State.

According to him, the programme will involve reconstruction of quay walls, deepening of channels to accommodate larger vessels, replacement of obsolete cargo-handling equipment and increased digitalisation of terminal and gate operations.

He said the scale of the planned intervention made private capital and institutional partnerships critical to delivering modern, efficient and commercially sustainable ports.

“Port efficiency affects the entire logistics chain. A delay at the port does not remain at the port. It affects manufacturers waiting for inputs, exporters waiting for vessels, transport operators, distributors and, ultimately, consumers,” Oyetola said.

The minister also disclosed that the Federal Government was working with state governments and private-sector investors on the development of deep seaports in Akwa Ibom, Bayelsa, Cross River, Ogun, Ondo and Rivers states.

He said the projects would expand national port capacity, create new maritime and logistics corridors, ease pressure on existing gateways and distribute economic activities along the coastline.

Oyetola said the government was particularly interested in ensuring that states and private investors became active participants in port development rather than relying solely on federal funding.

The minister further stressed the importance of technology in transforming port operations, noting that modern logistics required electronic documentation, accurate information, data-sharing and digital systems capable of reducing unnecessary physical processes.

He said digitalisation would improve cargo visibility, make port processes more predictable and ultimately reduce the time and cost of moving goods from seaports to their final destinations.

Oyetola said recent improvements had already attracted international recognition, citing the 2025 Container Port Performance Index by the World Bank and S&P Global Market Intelligence, which ranked Tin Can Island Port 10th and Lagos Port Complex, Apapa, 12th among the world’s 20 most improved container ports between 2020 and 2025.

He also announced that the United States Coast Guard had in August 2026 removed its Conditions of Entry on vessels arriving from Nigeria after 12 years of additional security-related requirements.

According to him, the development followed sustained efforts to improve compliance with the International Ship and Port Facility Security Code, strengthen access controls and address security gaps.

Oyetola said the newly established Nigeria Ports Economic Regulatory Agency would also help create a more predictable investment environment through regulation of tariffs and charges, service standards, competition and protection of port users. The agency commenced operations in August following presidential assent to its enabling law.

He said effective regulation, security and infrastructure must work together with private investment and technology to make Nigeria’s ports more competitive.

“Our immediate priority is to ensure that the investments and institutional changes now underway translate into practical improvements: faster cargo movement, improved vessel turnaround, greater capacity, stronger security, transparent regulation and lower logistics costs,” he said.

Oyetola urged development partners, financial institutions, state governments and industry associations to support the reform programme, stressing that greater collaboration was essential if transportation logistics was to make a stronger contribution to Nigeria’s economic growth.

Petrol Depot Prices Fall as Dangote, Marketers Cut Rates, Pump Price Reduction Looms

The price of Premium Motor Spirit (PMS), popularly known as petrol, has fallen across several major Nigerian depots, with the Dangote Petroleum Refinery cutting its wholesale price by N25 per litre, raising expectations that filling stations could begin reducing pump prices as they replenish their stocks.

The latest reductions were recorded in Lagos, Port Harcourt, Calabar and Warri, following a decline in international crude oil prices and renewed competition among petroleum suppliers.

Dangote Refinery reduced its petrol ex-gantry price from N1,350 to N1,325 per litre, just days after raising the price to N1,350.

The latest adjustment means the refinery has reversed part of the N85 increase introduced on September 12, when its petrol gantry price rose from N1,265 to N1,350 per litre.

Other major depot operators also reduced their prices, particularly in Lagos, where several companies cut their rates by between N20 and N24 per litre.

In Lagos, Ascon, Integrated, Pinnacle and Sahara reduced their petrol prices by N24 to between N1,326 and N1,327 per litre.

MRS reduced its price by N20 to N1,332, while Wosbab was listed at N1,330 per litre.

The reductions were also recorded outside Lagos.

In Calabar, Mainland reduced its petrol price by N7 to N1,320 per litre, while Alkanes cut its price by N2 to N1,325. Matrix retained N1,330, while Sobaz marginally increased its price by N1 to N1,328.

In Port Harcourt, Stockgap reduced its petrol price by N7 to N1,323 per litre, while Masters cut its rate by N2 to N1,328. Bulk Strategic and Sigmund were listed at N1,328, while Matrix retained N1,330.

In Warri, Keonamex reduced its price by N3 to N1,327, while Nepal and Prudent cut their rates to N1,329 and N1,328 respectively. Some operators, however, recorded marginal increases, underscoring the continuing volatility in the downstream market.

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The latest wholesale adjustments followed a decline in global crude prices, with Brent crude trading below $100 per barrel while West Texas Intermediate (WTI) also declined.

The movement is important to Nigeria’s petrol price market because international crude and refined-product prices influence the cost of locally refined products as well as imported PMS.

Brent had climbed as high as about $109 per barrel the previous week before retreating below the $100 mark, although other crude benchmarks have moved differently.

The latest decline has provided some room for refiners and marketers to review wholesale petrol prices downward, but further reductions will depend on the direction of crude prices, foreign exchange conditions and the cost of refined petroleum products.

The reduction at the depots has not, however, immediately translated into equivalent reductions at filling stations.

Petrol was still selling at between about N1,370 and N1,450 per litre in different locations, according to the latest market checks.

In Abuja, motorists and commuters complained that several filling stations had not reduced their pump prices despite the Dangote price cut.

Some stations were still selling petrol at between N1,395 and N1,450 per litre, creating a significant gap between the new Dangote depot price and some retail prices.

The delay is partly linked to the way the deregulated downstream petroleum market operates.

Retailers that purchased their existing stocks at higher prices may continue selling those products at prevailing rates until the stocks are exhausted and replaced with cheaper supplies.

Transportation, storage, logistics, station operating costs and individual marketers’ margins also influence the final pump price.

Consequently, a reduction in the ex-depot price does not automatically translate into an immediate N25 reduction at every filling station.

The latest wholesale price movement nevertheless places additional competitive pressure on retailers, particularly as more marketers begin lifting cheaper products.

It also comes as domestic refining continues to take a larger share of Nigeria’s petrol supply.

Data attributed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that domestic refineries supplied about 76.7 per cent of Nigeria’s petrol requirement in the first quarter of 2026, while petrol imports fell by about 60 per cent year-on-year to approximately 965.5 million litres.

The figures reflect the growing importance of the Dangote Refinery and other domestic refining facilities in Nigeria’s downstream petroleum market.

However, imported petrol has not disappeared from the country’s supply chain.

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The Federal Government has approved the importation of 830,000 metric tonnes of petrol for the fourth quarter of 2026, ahead of the Christmas and New Year period when fuel demand traditionally rises.

The permits were reportedly issued to Matrix Energy, AA Rano, AYM Shafa, NIPCO, Pinnacle Oil and Bono Energy.

The latest allocation represents an increase from earlier import approvals this year and means imported PMS will remain part of Nigeria’s supply mix despite the expansion of domestic refining capacity.

The import programme has also become a point of contention between Dangote Refinery and the downstream regulator.

Dangote Refinery is challenging the continued issuance of petrol import licences by the NMDPRA, arguing that domestic refining capacity is sufficient to meet local demand.

The legal dispute is before the Federal High Court, with the matter scheduled for further hearing on October 7, 2026.

The continuing import programme, however, reflects concerns about supply security.

NMDPRA data cited in industry reports showed that domestic petrol supply declined from about 32.5 million litres per day in June to 25.8 million litres per day in July, while imports increased from approximately 18.1 million litres per day to 19.7 million litres per day during the same period.

Total daily petrol supply consequently fell from 50.6 million litres to 45.5 million litres.

The figures indicate that although domestic refineries now provide the larger share of Nigeria’s petrol, imports can still serve as a buffer when local production falls below market requirements.

Another factor affecting the competitiveness of local refining is import parity.

The Major Energies Marketers Association of Nigeria had estimated petrol import parity at between N1,364.02 and N1,365.02 per litre as of September 17.

Dangote’s new N1,325 per litre price is therefore below that earlier import-parity estimate, although actual import costs continue to change with international prices, exchange rates, freight and other charges.

The development could encourage more marketers to source products from domestic refineries if local products remain commercially competitive with imported alternatives.

It also illustrates the changing structure of Nigeria’s fuel market, where international crude prices remain important but domestic refining capacity, competition and supply availability are increasingly influencing prices.

The Federal Government has also been engaging operators in the downstream sector over petrol pricing and supply.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority has convened consultations involving refiners, depot owners, marketers and retailers as the government seeks greater stability in the petroleum market.

For consumers, the immediate issue remains whether the reduction in wholesale prices will translate into cheaper petrol at the pump.

The latest reduction provides room for a downward movement, but the timing and size of any retail price cut will depend on the cost of existing stocks, new depot prices, transportation expenses, market competition and the direction of international crude prices.

The volatility of the market has also been reflected in the diesel segment.

Some depots reduced the price of automotive gas oil, with Lagos recording reductions of up to N15 per litre at some operators, while Port Harcourt and Warri also recorded significant cuts.

The movement in both petrol and diesel prices comes at a time when high energy costs continue to affect transportation, logistics, food distribution and operating expenses for Nigerian households and businesses.

If the lower crude prices persist and wholesale petrol prices remain at the new levels, motorists could see further reductions as cheaper stocks move through the distribution chain.

For now, the latest petrol depot price cuts have created a new opportunity for pump-price reductions, although the immediate impact will vary from one location and retailer to another.

The development also reinforces the increasingly competitive nature of Nigeria’s downstream petroleum sector, with Dangote Refinery, other domestic suppliers and importers competing to meet demand under a deregulated pricing regime.

Petrol Depot Prices Fall as Dangote, Marketers Cut Rates, Pump Price Reduction Looms