FG Targets Lower Logistics Costs, Increased Investment with New Marine and Blue Economic Policy

•NRC, Pi-CNG: No economy grows without efficient transport systems

Sunday Okobi

The federal government, through the Ministry of Marine and Blue Economy, has unveiled a new National Marine and Blue Economic Policy designed to cut logistics costs, boost trade competitiveness, and attract private sector investment into the transport and maritime sectors.

The Minister of Marine and Blue Economy, Adegboyega Oyetola, disclosed this while delivering a keynote address at the 2025 Nigeria Transport Sector Annual Summit organised by the Transport Correspondents Association of Nigeria (TCAN) in Lagos yesterday.

The minister, represented by the Director, Maritime Services Department of the Federal Ministry of Marine and Blue Economy, Dr. Mercy Iloro, explained the policy provides a framework for seamless intermodal integration across road, rail, barge, and pipeline channels, aimed at transforming Nigeria into a logistics hub for West and Central Africa.

According to him, “By lowering the cost of doing business, improving turnaround times, and creating an enabling environment for private capital, we are positioning Nigeria as a preferred logistics destination in Africa.”

He highlighted key interventions already underway, including the operationalisation of the Lagos–Ibadan standard gauge rail line for port cargo evacuation, expansion of barge operations at Lagos and Onne ports, completion of the Apapa–Oshodi expressway, and the inauguration of the 27km Lekki Port Access Road.

Oyetola also pointed to the development of inland dry ports in Ibadan, Kaduna, Kano, and Funtua to ease pressure on seaports and support regional economies, stressing that the success of the reforms depends on collaboration among shipping lines, terminal operators, freight forwarders, investors, and regulators, and that Nigeria must adopt digital, green, and climate-resilient logistics solutions to remain competitive globally.

Meanwhile, the Managing Director of the Nigerian Railway Corporation (NRC), Dr. Kayode Opeifa, at the summit, stated that transportation is more than just roads, bridges, railways, ports, or airports, adding that transportation is the bloodstream of a modern economy.

“It is the invisible infrastructure that connects production with consumption, farmers with markets, manufacturers with distributors, exporters with global trade, and citizens with opportunity.

“Without efficient transport systems, economic growth becomes stunted and gradually stalled. Without a dynamic transportation value chain, competitiveness weakens. But with it, industries flourish, jobs multiply, exports thrive, and national development accelerates,” he said.

According to Opeifa, “For Nigeria, the largest economy and most populous country in Africa, with more than 223 million people, the question is not whether transportation matters; it is how well we can drive the entire transportation value chain to deliver maximum economic benefit.”

On the current reality of Nigeria’s transportation landscape, the NRC boss noted that Nigeria is blessed with a strategic geography, adding that: “We are bordered not only by the Atlantic Ocean and vast seaports, but by four neighbouring countries that rely on our markets and corridors, and by inland waterways that stretch for over 10,000 kilometres. We are a natural logistics hub for West and Central Africa. Yet our transportation systems have historically lagged, holding back our huge potential.

“More than 80 percent of freight and passenger traffic in Nigeria happens by road. Yet less than 20 percent of our 200,000 kilometres of road network is paved and can be said to be in good condition. As we all know, congestion, security, and maintenance-related issues usually increase logistics costs.

 “We once had a thriving railway network, but decades of neglect reduced it to a shadow of its past. Recent rehabilitation projects-the Lagos–Ibadan line, the Abuja–Kaduna line, and the Warri–Itakpe line- offer hope, but we remain far from having a fully integrated modern rail system.

“Still on the railway, we are currently ensuring the rehabilitation of all legacy lines (known as the narrow gauges), with efforts made to ensure many of our states open rail corridors using the existing corridors in their domains at no extra cost, under the Railing with the States Policy and via the Track Access Programme.

“Kudos to the Lagos State Government for the Red Line, and lately, Plateau State, which has commenced rail services from Jos to Bukuru-Kuru. Other states are currently upbeat about reactivating the old lines in their corridor as the federal government, under the Renewed Hope Infrastructure Intervention Fund, has expressed readiness to release funds for that purpose to states. Lagos already benefits from this as funds through MOFI have been appropriated for the Marina-Lekki Green Line.”

He added there has been an aggressive Cargo by Rail Revolution which has gained a new momentum since February, noting: “when we came on board at the NRC. Organised Private Sector with over 25 freight logistics companies already utilising the rail corridor to move goods/cargoes on the corridors, while the NRC is also recording huge successes carrying Soda Ash, Cement, Gypsum, and other goods, even as demands continue to grow.”

In his remarks, the Programme Director of the Presidential Initiative on Compressed Natural Gas (Pi-CNG), Michael Oluwagbemi, at the summit commended the Transportation Correspondents Association of Nigeria for convening ‘this important forum and for the gracious invitation extended to Pi-CNG’.

He stated that the theme of this year’s summit: ‘Driving the Transport Logistics Value Chains for Economic Growth’, could not be timelier, as Nigeria’s transport sector is the lifeblood of its economy.

His words: “It is through efficient transport and logistics that our industries thrive, our agricultural produce reaches markets, and our people stay connected. To unlock growth, we must ensure our transport systems are not only effective but also sustainable, affordable, and future-ready.

“This is where the Presidential CNG Initiative comes in. Established under the leadership of President Bola Ahmed Tinubu, Pi-CNG is tasked with accelerating Nigeria’s transition from petrol and diesel to Compressed Natural Gas. Our mandate is simple but transformative: to provide Nigerians, especially those in the transport and logistics value chains, with cheaper, cleaner, and safer energy alternatives.”

The programme director stressed the importance of CNG for the transport sector, stating that CNG is significantly cheaper than petrol or diesel. “For transport operators, this means lower operating costs, higher margins, and more competitive pricing.

“It also has environmental benefits: CNG emits far fewer pollutants, reducing the ecological footprint of our logistics operations. Cleaner air means healthier citizens and more sustainable cities.

“Energy security: By harnessing Nigeria’s abundant natural gas, we reduce dependence on imported fuels and strengthen our economic sovereignty,” he said.

According to Oluwagbemi, “Already, Pi-CNG has begun rolling out conversion centres, training programmes, and fueling infrastructure nationwide. We are working hand-in-hand with transport unions, private investors, and government agencies to ensure that buses, taxis, trucks, and even motorcycles can be powered by CNG.

“For Nigeria’s logistics value chain, this presents a historic opportunity. Imagine fleets of cargo trucks moving goods from our ports to inland cities on CNG, cutting costs, reducing emissions, and improving competitiveness. Imagine intermodal hubs where rail, road, and waterways converge, powered by clean energy solutions. This is not a distant dream; it is a future we are building together.

“As we deliberate today on intermodal cargo evacuation, waterway transportation codes, and a century of aviation, let us keep in mind that innovation and sustainability must underpin every solution. Pi-CNG stands ready to work with you all to ensure that our transport and logistics systems truly drive economic growth for Nigeria.”