FG Unveils Major Reforms, Confirms Unbundling of NRC to Boost Efficiency, Global Competitiveness

The Federal Government today, Tuesday, November 4, 2025, unveiled a wide-ranging blueprint for the nation’s transport sector, aimed at tackling chronic inefficiencies and positioning Nigeria for enhanced global competitiveness. The key announcement was the approval of a foundational policy document and the commencement of the long-anticipated overhaul of the Nigerian Railway Corporation (NRC).

Speaking at the 7th National Conference of the Chartered Institute of Transport Administration of Nigeria (CIOTA) in Abuja, the Minister of Transportation, Senator Said Ahmed Alkali, confirmed that the Federal Executive Council (FEC) had approved the National Land Transport Policy (NLTP). The Minister described the policy as a “historic milestone” designed to harmonize standards, improve coordination among road, rail, and other land-based transport systems, and significantly accelerate private sector-led investment.

“The administration of President Bola Tinubu is implementing critical reforms and investments across all transport modes to drive economic growth and improve logistics efficiency,” Minister Alkali stated.

NRC Unbundling and Railway Progress

In what is arguably the most critical structural reform, the Minister disclosed that the unbundling of the Nigerian Railway Corporation (NRC) is underway. This process seeks to break down the monolithic, state-controlled agency into more efficient units, separating the core functions of infrastructure management, rolling stock operations, and regulation to enhance service delivery and profitability. The unbundling is seen as essential for attracting the private capital needed to sustain the railway’s rapid expansion.

The Minister highlighted the concrete progress already being recorded in the rail sector:

• The Lagos–Ibadan and Abuja–Kaduna standard-gauge lines are fully operational and contributing significantly to freight and passenger movement.
• The Kaduna–Kano segment of the standard gauge network is nearing completion.
• Work is continuing on the strategic Kano–Maradi line, which will boost regional trade by linking Nigeria to the Niger Republic, as well as the crucial Port Harcourt–Maiduguri Eastern Narrow Gauge rehabilitation.

The transport reforms come amidst consistent pressure from industry stakeholders who have cited the country’s high logistics costs and crumbling infrastructure as major bottlenecks undermining the nation’s manufacturing sector and stifling the overall economy. With the new policy framework in place and the NRC overhaul initiated, the government aims to significantly cut costs and accelerate trade across the entire logistics chain.