Long Payback Period Remains Major Barrier
The Managing Director of the Nigerian Railway Corporation (NRC), Dr. Kayode Opeifa, has highlighted long project payback periods as a key reason investors are reluctant to enter Nigeria’s rail sector.
Speaking on The Exchange Podcast with Femi Soneye, Opeifa said while Nigeria’s rail network presents huge economic potential, private investors are often discouraged by the extended timelines required to see returns on their investments.
> “Rail projects are capital-intensive and take years to mature. Without structured incentives, investors naturally gravitate toward sectors with quicker returns,” he explained.
Opeifa added that addressing funding challenges, regulatory clarity, and risk mitigation could make rail investments more attractive, encouraging greater private sector participation.
> “Rail is not just transport; it is an engine for industrialization and economic growth. Unlocking private capital is essential to realizing its full potential,” he stressed.
The NRC boss also discussed ongoing reforms to modernize infrastructure, expand freight capacity, and introduce transparent partnerships with states and private operators.
The full discussion is airing on The Exchange Podcast with Femi Soneye, offering insights into the opportunities and challenges of investing in Nigeria’s rail sector.