Comrade Daniel Onjeh, socio-economic analyst and former Chairman of the Governing Board of the Projects Development Institute (PRODA), Enugu, has issued a call for the Federal Government to shift Nigeria’s railway system focus from passenger to freight transportation. Onjeh argues that prioritizing freight services could play a transformative role in Nigeria’s economy, alleviating hardships associated with inflation, and supporting the industrial and agricultural sectors.

In his recent press statement, Onjeh highlighted that while developed and emerging economies leverage rail for efficient freight transportation, Nigeria’s current passenger-focused railway system leaves many opportunities untapped. He notes that the passenger-centred model fails to alleviate economic pressures, instead serving a limited population concentrated in urban centers.

By restructuring the railway system to prioritize freight, Onjeh believes Nigeria can achieve more impactful benefits that address widespread economic challenges.

He outlines the critical advantages of a freight-focused railway network to include:

1. Reducing Food Costs: Freight trains offer an efficient solution for transporting bulk food supplies, which could help stabilize and lower food prices across Nigeria. Onjeh stated that countries like India and Brazil have successfully used freight rail to ensure affordable food distribution from agricultural hubs to urban centers, which has reduced hunger and food costs for millions.
2. Supporting Industrialization and Construction: Freight rail could transport heavy industrial materials such as cement, steel, and machinery more affordably, supporting infrastructure and construction projects that are vital to Nigeria’s growth. Drawing from South Africa’s example, Onjeh emphasizes that an efficient freight network can streamline the movement of materials, benefiting the construction and manufacturing sectors.
3. Creating Jobs and Empowering Local Economies: Developing a freight-centered railway system, Onjeh argues, would create both direct and indirect employment opportunities in construction, logistics, maintenance, and warehousing, fueling local economies nationwide.

The former Chairman, Governing Board of the Projects Development Institute (PRODA) Enugu, points to China’s integrated freight rail model as a valuable example, noting how it prioritizes bulk goods transport to spur economic productivity. “Additionally, China’s approach allows for dual-use trains, accommodating passenger needs on freight routes in rural areas”. This model, he suggests, could be adopted in Nigeria to support traders and farmers who need to transport goods alongside passengers.

Onjeh, who is also a chieftain of the APC and the party’s 2023 Senatorial Candidate for Benue South, further noted that the United States provides another model for Nigeria’s railway transformation, noting that its extensive, privatized freight network supports bulk goods movement with minimal government intervention, benefiting the economy through reduced logistical costs. Adopting similar policies in Nigeria, Onjeh opined, could alleviate inflationary pressures and lessen dependence on fuel-intensive road transport.

He therefore urged the Federal Government to realign railway policies with economic priorities by focusing investments on freight infrastructure. He also called for balanced foreign partnerships that prioritize Nigeria’s socio-economic needs and incentivize private sector investment. “Tax breaks or grants for domestic companies willing to invest in railway freight would further stimulate development,” stated Onjeh.

With rising fuel costs due to subsidy removal, Onjeh notes that freight rail provides an efficient alternative for moving essential goods, mitigating inflationary effects. “By focusing on freight transport, the government could alleviate household burdens and support food and commodity distribution at a lower cost,” he suggested.

In conclusion, Comrade Onjeh advocated for a shift in Nigeria’s railway strategy toward freight, emphasizing that such a move would help stabilize the economy, reduce costs of goods, and create jobs. He envisions a railway system focused on the needs of the majority rather than a select few, highlighting this as a critical path toward long-term economic stability and development.