In a major infrastructure milestone, the Oyo State Government has officially handed over 90 hectares of land to the Federal Government. The land will be used for the construction of the Ibadan Inland Dry Port in Akinyele Local Government Area. This handover marks a crucial step toward easing pressure on Nigeria’s seaports and improving cargo logistics across the country.
The Handover and Its Significance
During a ceremony at the Governor’s Office in Ibadan, the Oyo State Governor presented the land documents to the Federal Minister of Transport. The site, located in Olorisa-Oko village, is expected to become a vital logistics hub linking rail, road, and cargo operations.
Moreover, this move signals a transition from planning to implementation, something analysts have long awaited. It also demonstrates growing collaboration between state and federal governments to improve trade efficiency.
What the Dry Port Means for Oyo and Nigeria
The Ibadan Inland Dry Port will handle both containerised and bulk cargo. It aims to reduce the heavy traffic at Lagos ports and streamline freight movement inland. Additionally, the site’s proximity to the Lagos–Ibadan Standard Gauge Railway boosts its commercial potential.
For Oyo State, the benefits could be significant:
- Job creation: Employment opportunities in logistics, transport, and ancillary services.
- Industrial growth: The project could attract investors to the Moniya–Olorisa-Oko corridor.
- Infrastructure development: Roads, rail links, and utilities will improve around the dry port.
At the national level, the project fits into Nigeria’s broader goal of decentralising cargo operations. Consequently, it may lower trade costs and expand inland economic zones.
Timeline and Process
Oyo State had earlier provided the land “free from encumbrance,” allowing the Federal Government to proceed with project planning. The formal handover took place in May 2019, marking the legal transfer of ownership.
Afterward, the focus shifted to completing the Full Business Case, securing cabinet approvals, and arranging project financing. Preparations also include access-road construction and rail integration to ensure smooth logistics once operations begin.
Challenges Ahead
Despite the progress, the project faces a few challenges.
First, the infrastructure must be ready. The Federal Government has asked Oyo State to develop supporting roads or risk the project’s relocation.
Second, traffic management remains a concern. Without new link roads, freight could shift congestion from Lagos to Ibadan.
Third, funding is a major issue. The project was initially valued at about US$99.7 million (₦35.8 billion). Ensuring sustainable financing and timely completion will be critical.
Finally, coordination among stakeholders—federal agencies, state authorities, and private concessionaires—will determine the project’s pace and success.
Why This Matters Now
The handover is more than a symbolic gesture. It proves that Nigeria is ready to diversify its logistics framework. By developing inland freight infrastructure, the country can:
- Cut transportation costs from ports to the hinterland.
- Strengthen regional supply chains for manufacturers.
- Enhance the use of the Lagos–Ibadan rail corridor as a key cargo route.
For Oyo State, this project could transform the Moniya area into a thriving logistics hub, drawing industries that rely on transport and warehousing.
What Comes Next
In the next phase, several key steps must follow:
- Federal approval of the Full Business Case.
- Detailed design and construction of port facilities, including customs offices and warehouses.
- Completion of access roads and utility connections.
- Integration with rail infrastructure for smooth freight transfer.
- Community engagement and resettlement, ensuring fair compensation and cooperation.
Moreover, transparency and regular stakeholder updates will help maintain trust and prevent project delays.
Broader Implications
The Ibadan Inland Dry Port could serve as a model for other states planning similar projects. It supports Nigeria’s efforts to expand logistics capacity beyond the coasts and attract private investment in warehousing, trucking, and supply-chain services.
Furthermore, it encourages smarter urban planning to prevent congestion around industrial zones. If managed well, this project could redefine inland freight transport across West Africa.
Conclusion
The Oyo State Government’s transfer of 90 hectares to the Federal Government represents a major advancement in Nigeria’s logistics infrastructure. If executed effectively, the Ibadan Inland Dry Port will decongest seaports, improve cargo flow, and stimulate industrial growth in the southwest.
However, the project’s success depends on timely approvals, infrastructure readiness, and consistent coordination. With proper execution, the dry port can mark the start of a new era in Nigeria’s transport and trade development.
