Nigeria Loses ₦3.6tn to Logistics Inefficiencies as NRC Pushes Integrated Transport System

Nigeria Loses ₦3.6tn to Logistics Inefficiencies as NRC Pushes Integrated Transport System

 

The Nigerian Railway Corporation has unveiled an ambitious plan to expand Nigeria’s railway network from approximately 4,000 kilometres to 10,000 kilometres within five years.

This is coming as it pushes for an integrated transportation and logistics system to reduce business costs, boost trade and strengthen the nation’s economic competitiveness.

The NRC also has a long-term target of extending the rail network to about 20,000 kilometres, with plans to optimise existing railway assets, revive dormant corridors, expand freight operations and attract private investment into passenger and cargo services.

Managing Director of the corporation, Dr Kayode Opeifa, disclosed these plans at the BusinessDay Mobility and Logistics Conference in Lagos, where he identified an efficient, interconnected transport system as a critical driver of economic resilience and productivity.

Speaking on the theme, “Scaling the Future: Building a Resilient and Efficient Mobility and Logistics Ecosystem in Nigeria,” Opeifa warned that inefficiencies across the country’s transportation network were contributing to congestion, rising logistics costs, delayed deliveries, reduced productivity and higher prices of goods and services.

He argued that integrating rail, road, maritime and air transportation would help address these challenges by improving connectivity between production centres, markets, seaports and distribution hubs.

According to him, rail transportation occupies a strategic position in developing an efficient national transport network because of its capacity to move large volumes of passengers and freight over long distances while reducing pressure on highways.

“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.

Opeifa explained that while road transport remained essential for cargo collection and last-mile delivery, maritime transport facilitated international trade, and inland terminals supported cargo handling and distribution, rail provided the high-capacity link connecting these facilities with industrial and commercial centres.

He said seamless coordination among the different modes would reduce avoidable logistics costs, promote regional commerce, improve access to markets and enhance the competitiveness of Nigerian products.

PRIVATE SECTOR PARTICIPATION

Outlining the NRC’s priorities since assuming office, the managing director highlighted the corporation’s track access policy, which provides opportunities for private investors to operate passenger and freight services along designated railway corridors.

He said the policy was part of efforts to improve the utilisation of existing infrastructure, expand railway services and mobilise investment to accelerate the development of the sector.

Under its Vision 2:5:10:20, the corporation is focusing on optimising existing railway assets, restoring viable dormant corridors, expanding freight operations, strengthening private-sector partnerships and progressively extending the national network.

Opeifa said immediate priorities included improving the utilisation of Nigeria’s two legacy narrow-gauge lines and three standard-gauge lines, restoring operational capacity, expanding freight services and strengthening connections between railway infrastructure, ports and inland terminals.

He maintained that maximising the value of existing assets would be essential to achieving the corporation’s expansion targets and building a more commercially viable railway system.

NEW RAILWAY PROJECTS

The NRC chief also highlighted ongoing and planned railway infrastructure projects under President Bola Ahmed Tinubu’s administration, including efforts to extend the standard-gauge railway to Apapa Port and establish a connection to Tin Can Island Port in Lagos.

The proposed connections are expected to strengthen the relationship between rail and maritime transportation, improve cargo evacuation and reduce the pressure on roads leading to the ports.

Opeifa further said the Kano–Maradi railway line was expected to be completed in 2027, while plans were ongoing for a central railway corridor linking the Warri–Itakpe line to Abuja.

He added that the government planned to commence construction of the Marina–Lekki railway line, alongside efforts to support the Kaduna–Kano inter-state train service and the Kano State Government’s proposed intra-state rail services.

The projects, he said, formed part of broader efforts to expand rail connectivity, improve passenger mobility and facilitate the movement of goods across the country.

₦3.6TRN LOGISTICS LOSSES

Also speaking at the conference, the Director-General of the Africa Centre for Supply Chain, Dr Obiora Madu, estimated that Nigeria loses more than ₦3.6 trillion to inefficiencies and distortions in the transportation and logistics sector.

He warned that small-scale businesses would continue to struggle to operate efficiently unless the country addressed the disconnect among its transport and logistics networks.

“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,” Madu said.

He argued that building a resilient logistics ecosystem required more than expanding individual infrastructure projects, stressing the importance of coordination, connectivity and the ability of the entire system to withstand disruptions.

Similarly, the Managing Director of JanksMay Global Services Ltd., Ifeanyi Onwuachu, said infrastructure deficits continued to undermine the operations of small-scale players in the logistics industry.

He called attention to the need for better infrastructure and more efficient transport connections to support businesses and improve operational performance.

Earlier, the Deputy Editor-in-Chief of BusinessDay, Dr Innocent Nna, described the conference as a platform for examining persistent gaps in Nigeria’s logistics sector and identifying practical solutions.

He urged stakeholders to engage in frank discussions on the challenges confronting the industry and develop strategies to improve efficiency across the sector.

The conference brought together industry stakeholders to explore ways of building an integrated, efficient and resilient mobility and logistics ecosystem capable of supporting economic growth and improving the competitiveness of Nigerian businesses.