The 36 state governors under the aegis of the Nigeria Governors’ Forum (NGF) have rejected allegations that sub-national governments failed to properly account for funds received following the removal of the petrol subsidy.
The governors said accusations over the alleged mismanagement of subsidy-removal proceeds by state governments were unfounded.
Bayelsa State Governor, Douye Diri, who spoke on behalf of the NGF Chairman and Kwara State Governor, AbdulRahman AbdulRazaq, dismissed the allegation when he addressed journalists after the Forum’s third meeting in Abuja.
Asked whether the governors would accept responsibility for claims that states had not been accountable for funds received from the subsidy removal, Diri said, “That cannot be true. That cannot be true. But we’ll leave that debate for another day.”
The governors, however, backed the proposed National Affordable CNG Transit Programme (NACTP), describing it as a potential solution to rising transportation costs across the country.
According to Diri, the initiative is designed to leverage the lower operating cost of compressed natural gas (CNG) to reduce passenger fares. He said state governments were expected to support vehicle conversions, CNG fleets and other infrastructure required for the programme.
“Gas is cheaper than petrol, which will actually reduce the costs of transportation,” Diri said, adding that the governors would collaborate with the private sector to increase the number of CNG-powered vehicles in the country.
He said reducing transportation costs could have a multiplier effect on other sectors of the economy, particularly for ordinary Nigerians.
“The impact is expected to be on our people, the common man,” he said.
The governors also explained their decision to prioritise transportation-related palliatives, arguing that high transport costs directly contribute to increases in the prices of food and other essential commodities.
The Forum noted that the cost of moving agricultural produce and other goods from one location to another ultimately affects the prices paid by consumers.
“Transportation is key to several other factors,” the governors said, noting that reducing transport costs could help lower the prices of commodities such as yam and garri.
The NGF said the NACTP would involve state support for CNG vehicle conversions, fleet acquisition and enabling infrastructure, alongside commitments by participating transport operators to reduce fares.
The governors said the programme had the potential to ease the burden of transportation costs but added that its financing and implementation framework still required further consideration.
Diri said the timeline for implementation would be determined through discussions between the Forum and the promoters of the programme.
“These details will be worked out between the Forum and those who have come to present to the Forum,” he said.
On the broader debate over the removal of the petrol subsidy, Diri said the CNG initiative was among measures being considered to cushion the impact of the policy on Nigerians.
He maintained that transportation costs had become a major driver of inflation, stressing that cheaper CNG-powered transport could help reduce costs across several sectors.
Meanwhile, the governors also received a briefing from the Minister of Industry, Trade and Investment, Jumoke Oduwole, on opportunities for states to participate in CANEX Weekend 2026 and the Intra-African Trade Fair (IATF) 2027, both scheduled to take place in Lagos.
According to the NGF, the events would provide opportunities for states to showcase investment-ready projects, promote local exports and tourism, and connect state-based micro, small and medium enterprises with African and international investors and buyers.
The governors expressed their collective commitment to participating in the programmes and pledged their support for the minister’s efforts to maximise the opportunities they present.
