The Nigerian Railway Corporation (NRC) has made a significant improvement in the logistics sector by resuming cargo rail services between Lagos and Ibadan. The move reduces congestion, improves transport efficiency and eases road transport. With 210 containers transported every week, the new rail line improves traffic flow and helps prevent accidents.
Logistics Efficiency and Transportation Improvements
Rail transport has the capacity to carry 35 40-foot containers or 70 20-foot containers each time. Logistics mobility increases with regular trips on Mondays, Wednesdays and Fridays. It is stated that these trips provide efficiency in transportation by significantly reducing truck traffic on the highway. Container transport is faster and safer by rail.
The Director General of NRC, Dr. Kayode Opeifa, highlighted the economic benefits of rail transport. The new service reduces logistics costs and increases supply chain efficiency. It also provides an alternative solution for truck drivers who avoid the heavy traffic rules of Lagos. The Moniya Inland Dry Port in Ibadan is becoming one of the most reliable alternatives in this area.
Economic Impacts and Trade Revival
As of 2024, the NRC transported 362.327 tonnes of goods, using both standard gauge and narrow gauge lines across Nigeria’s extensive railway network. Dr. Opeifa said the modernisation of the railway was in line with the government’s economic growth objectives, adding that the initiative would help boost trade by reducing consumer prices.
Rail transport is much cheaper than road transport and offers more cost-effective logistics solutions for businesses and consumers. This development has a positive impact on both domestic trade and exports. In addition, investments in the railway system will ensure sustainable economic growth in the long term.
Multimodal Logistics and Increase in Exports
Nigeria’s Apapa Port benefits from a multimodal system that combines road, barge and rail transport. This system speeds up cargo movement by increasing transport efficiency. As of 2022, export volumes at Apapa Port increased by 43%. The transition to rail transport has improved operations and strengthened the trade sector.
Trade Competitiveness and Sectoral Investment Prospects
Improving Nigeria’s logistics infrastructure is boosting the country’s trade competitiveness. Efficient logistics solutions support economic progress, infrastructure development and job growth. Industry leaders are expecting more investment in Nigeria’s rail sector. These investments will deliver long-term improvements in freight transport through sustainable rail projects.
The resumption of the Lagos-Ibadan cargo rail services by the Nigerian Railway Corporation is a major boost to the logistics sector. This development has positive effects on both domestic and foreign trade, contributing significantly to the country’s economic growth.
