The South-West Development Commission has clarified that the rail licence recently granted to the commission only permits operations on existing rail tracks and does not authorise the construction of new railway lines in the South-West.

In a statement issued on Tuesday, the commission said the clarification became necessary following public interpretations that the licence approved the development of new rail infrastructure across the region.

Last week, the Managing Director and Chief Executive Officer of the commission, Charles Akinola, announced that the SWDC had secured a provisional rail operating and track access licence from the Nigerian Railway Corporation.

According to Akinola, the licence allows the commission to operate passenger and freight rail services along existing rail corridors connecting communities, businesses, industrial hubs and economic centres within the South-West.

The commission stressed that the approval only covers operations on existing narrow and standard gauge rail lines and does not include permission to construct new tracks.

“The provisional rail operating and track access licence issued by the Nigerian Railway Corporation authorises SWDC to provide services on existing narrow and standard gauge rail corridors in the region. The licence does not extend to the construction of new rail tracks,” the statement said.

SWDC added that the licence would serve as the foundation for its South-West Rail, Agro-Industrial and Logistics platform, aimed at improving transportation and regional economic activities.

According to the commission, the initiative is expected to reduce transportation costs, improve logistics efficiency, support agro-industrial development, enhance passenger mobility and create jobs across the region.

The commission also urged the public to rely on its official communication channels for accurate information regarding its projects and programmes.

Established in September 2025, the South-West Development Commission is a federal agency headquartered in Ibadan and tasked with driving infrastructure development, economic growth and poverty reduction across the six South-West states.