Governors back CNG programme, reject blame over subsidy funds

ABUJA — The 36 state governors under the aegis of the Nigeria Governors’ Forum (NGF) have rejected allegations that sub-national governments failed to account properly for funds accruing from the removal of petrol subsidy.

The governors also backed the proposed National Affordable CNG Transit Programme (NACTP), saying the initiative could reduce transportation costs and ease the hardship faced by Nigerians.

The governors made their position known after their third meeting at the NGF Secretariat in Abuja, which ended in the early hours of Thursday.

Bayelsa State Governor, Douye Diri, who read the communique on behalf of the NGF Chairman and Kwara State Governor, AbdulRahman AbdulRazaq, said the Forum had considered the proposed NACTP, a state-led initiative designed to translate the lower operating cost of Compressed Natural Gas (CNG) into reduced transport fares.

Diri said the governors recognised the potential of the programme to ease transportation costs but agreed that its financing and implementation framework required further consideration.

Asked whether the Forum would accept blame over allegations that sub-national governments had failed to properly account for funds received following the removal of fuel subsidy, Diri said: “That cannot be true. That cannot be true. But we’ll leave that debate for another day.”

According to him, the governors would work with the private sector to increase the number of CNG-powered vehicles in the country, noting that gas was cheaper than petrol and could therefore reduce transportation costs.

He said the expected reduction in transport fares would have a multiplier effect across the economy, particularly for ordinary Nigerians.

“The impact is expected to be on our people, the common man,” Diri said.

The governor said the NACTP proposal envisaged state government support for CNG vehicle conversions, fleets and enabling infrastructure, alongside fare commitments from participating transport operators.

He added that the details of the programme, including its implementation timeline, would be worked out between the Forum and the proponents.

Diri said the governors supported focusing palliative measures on transportation because the cost of moving people and goods directly affected the prices of food and other essential commodities.

“Transportation is key. Transportation is key to several other factors. Say, for instance, you are talking about foodstuffs—increase in the cost of foodstuffs. They will tell you that ‘I’m moving from point A to point B, the transport cost is XY.’

“And so for that reason, the cost of my yam, the cost of my garri… And so by the time you reduce the cost of transport, as I said earlier, it will have a multiplier effect on several others,” he said.

On calls for the reversal of the petrol subsidy removal, Diri said the NACTP was among measures being considered to cushion the impact of the policy on Nigerians.

He said the reduction in transport fares would help mitigate the effects of rising prices across other sectors of the economy.

The governors also received a presentation from the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, on opportunities for states to participate in CANEX Weekend 2026 and the Intra-African Trade Fair (IATF) 2027, both scheduled to hold in Lagos.

Diri said the governors resolved to participate in the programmes, noting their potential to showcase investment-ready projects, promote local exports and tourism, and connect state-based micro, small and medium enterprises with African and global investors and buyers.

“The Forum assured the Honourable Minister of its support in achieving these objectives,” he said.

The NGF said it would continue discussions on the financing and implementation framework of the NACTP with the programme’s proponents, with the aim of determining how best to translate the lower operating cost of CNG into affordable transportation for Nigerians.