The South-West Development Commission (SWDC) has clarified that its recently obtained rail licence is strictly for operating services on existing rail tracks and does not authorise the construction of new rail infrastructure in the region.

The commission clarified a statement issued on Tuesday, following public interpretation that the licence granted approval for new rail line construction across the South-West.

Last week, the Managing Director/Chief Executive Officer of the SWDC, Charles Akinola, announced that the commission had secured a provisional rail operating and track access licence from the Nigerian Railway Corporation, enabling it to run passenger and freight services along existing rail corridors.

Akinola had explained that the licence was meant to support operations on already existing rail networks linking communities, industrial hubs, and economic centres across the South-West, not new construction projects.

Reaffirming this position, the commission said the licence only permits operations on existing narrow and standard gauge rail corridors within the region.

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

The SWDC added that the development had been widely misunderstood in some quarters, prompting the need for clarification.

It said the rail initiative would instead form part of its broader South-West Rail, Agro-Industrial and Logistics (SW-RAIL) platform aimed at improving transportation efficiency and economic activity in the region.

According to the commission, the platform is designed to optimise existing infrastructure, reduce logistics costs, improve mobility, support agro-industrial development, and create jobs across the South-West.

The commission assured that further updates would be communicated through its official channels and urged the public to rely only on verified information.

The SWDC, established in September 2025, is a federal agency tasked with driving infrastructure development and economic growth across the South-West states, with its headquarters in Ibadan.