…faults claim states mismanaged subsidy removal proceeds
Governors of the nation’s 36 states have agreed to work on modalities to improve the financing and adoption of compressed natural gas (CNG) to power vehicles as a measure against rising transport and food costs.
Part of the plan is to work with the private sector to improve investment in and deployment of CNG, with the aim of reducing the prices of goods and services in the country.
The governors took the decision on Wednesday night at the third meeting of the Nigeria Governors’ Forum (NGF) held at the NGF’s secretariat in Abuja.
The governors, in a communique issued at the end of the meeting and endorsed by the NGF’s Chairman and Governor of Kwara State, AbdulRahman AbdulRazaq, said they took the decision after a presentation on the proposed National Affordable CNG Transit Programme (NACTP), “a state-led initiative designed to translate the lower operating cost of CNG into reduced transport fares for citizens.”
According to the governors, “The proposal envisages state support for CNG vehicle conversions, fleets and enabling infrastructure, alongside fare commitments from participating operators, with an indicative target of reducing passenger fares.”
They noted the initiative’s potential to ease transport costs and agreed on the need to further consider its financing and implementation framework.
Governor Duoye Diri of Bayelsa State, who read the communique to newsmen shortly after the meeting, argued that the initiative would make the debate over the suitability of removing the fuel subsidy unnecessary.
Diri noted that the rise in the cost of everything else is also blamed on higher transport costs, adding that “now that the forum (NGF) is going in league with the private sector to see how we can bring in CNG, it will actually reduce the cost of transportation. You know that gas is cheaper than petrol and others.”
He added that the initiative “will have a multiplier effect on every other sector, and that is because of the removal of fuel subsidy, and the impact is expected to be on our people, that is, the very common man that we all talk about.”
On whether states could be blamed for not properly accounting for the revenue accruing from fuel subsidy removal, he said, “That cannot be true. That cannot be true, but we leave that debate for another day.”
On why the governors were interested in reducing the cost of transport and not food items, Diri said the decision was informed by their realisation that “transportation is key to several other factors.”
He noted that sellers always blame transport costs for their decision to raise prices, adding: “a seller will tell you that he/she move from point A to point B, and the transport cost is XY, and so, for that reason, the cost of my yam; the cost of my gari, and others have increased. So, as I said earlier, our focus will have a multiplier effect.”
According to the communique, the governors each received a presentation from the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, on opportunities for state participation in CANEX Weekend 2026 and the Intra-African Trade Fair (IATF) 2027, both scheduled to be held in Lagos.
The governors noted the platform’s potential to showcase investment-ready projects, promote local exports and tourism, and connect state MSMEs with African and global investors and buyers.
They assured the minister of their support in achieving the projects’ objectives.
