Transport inefficiencies raising prices of goods — NRC

The Nigerian Railway Corporation has warned that inefficiencies in Nigeria’s transportation network are contributing to rising prices of goods and services, as businesses grapple with high logistics costs, congestion and delays in moving products across the country.

The Managing Director of the corporation, Dr Kayode Opeifa, disclosed this at the BusinessDay Mobility and Logistics Conference held at Four Points by Sheraton, Victoria Island, Lagos, according to a statement issued by the NRC on Wednesday.

Speaking on the theme, “Scaling the Future: Building a Resilient and Efficient Mobility and Logistics Ecosystem in Nigeria,” Opeifa identified poor connectivity between transportation systems as a major obstacle to economic productivity and competitiveness.

“He said inefficiencies in the country’s transportation network contribute to congestion, rising logistics costs, delayed deliveries, reduced productivity and higher prices of goods and services.

“According to him, rail transportation occupies a strategic position in developing an efficient national transport network, adding that an integrated system with rail as a key component could translate improved connectivity into greater economic competitiveness and growth,” the statement read.

He advocated greater integration of rail, road, maritime and air transportation to reduce the cost of moving goods between production centres, ports and markets.

“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 rail transportation could reduce pressure on highways by providing high-capacity passenger and freight services, particularly over long distances.

According to him, roads remain essential for cargo collection and last-mile delivery, while maritime transportation connects Nigeria to international markets and inland terminals facilitate distribution.

He maintained that linking these facilities through efficient railway services would reduce avoidable logistics expenses, improve market access and strengthen the competitiveness of Nigerian products.

On railway expansion, the NRC managing director disclosed plans to increase the country’s rail network from approximately 4,000 kilometres to 10,000 kilometres within five years, representing a proposed expansion of 150 per cent.

“Our ambition is to consistently grow the networks from approximately 4,000 kilometres that we met, to 10,000 kilometres within five years and ultimately achieving about 20,000 kilometres over the long term.

“These are no doubt strategic targets that require sustained investment and implementation,” he stated.

He said the corporation’s Vision 2:5:10:20 prioritised restoring dormant railway corridors, expanding freight operations, improving existing infrastructure and attracting private investment.

Opeifa added that the NRC’s track access policy would allow private operators to provide passenger and freight services along railway corridors.

He identified improved utilisation of the two existing narrow-gauge lines and three standard-gauge lines as immediate priorities.

The NRC chief also disclosed that efforts were underway to extend standard-gauge rail services to Apapa Port and establish a connection to Tin Can Island Port.

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

Other proposed developments include the Marina–Lekki railway, Kaduna–Kano inter-state train services and Kano State’s planned intra-state rail network.

Meanwhile, the Director-General of the Africa Centre for Supply Chain, Dr Obiora Madu, estimated that Nigeria loses more than N3.6tn to inefficiencies and distortions in its transportation and logistics sector.

“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 infrastructure investments would deliver limited benefits without effective coordination between transportation networks.

Similarly, the Managing Director of JanksMay Global Services Limited, Ifeanyi Onwuachu, said infrastructure deficits continued to undermine the operations of small-scale logistics businesses.

The Deputy Editor-in-Chief of BusinessDay, Dr Innocent Nna, urged industry stakeholders to identify practical solutions to persistent transportation challenges, stressing the need for more efficient logistics systems to support economic growth.