NGF says cheaper CNG could lower commuting costs and ease pressure on prices of goods and services….
The Nigeria Governors’ Forum is exploring a plan to reduce transportation fares across the country through a proposed National Affordable CNG Transit Programme.
The initiative, which was discussed at the governors’ meeting in Abuja on Wednesday, is designed to take advantage of the lower operating costs of compressed natural gas to make public transportation more affordable.
In a communiqué signed by the NGF Chairman and Kwara State Governor, AbdulRahman AbdulRazaq, the forum said state governments would support the programme by helping transport operators convert vehicles to CNG, providing fleets and developing the infrastructure required to sustain the initiative.
Participating transport operators are expected to commit to reducing fares in return.
The governors, however, did not announce when the programme would begin, saying further work was required to determine its financing and implementation arrangements.
Speaking to journalists after the meeting, Bayelsa State Governor Douye Diri said the proposal was developed in response to the economic strain caused by rising transportation costs, particularly following the removal of the petrol subsidy.
According to Diri, lowering the cost of transportation could have a wider impact on the economy because the cost of moving food and other commodities is ultimately passed on to consumers.
“Transportation is key,” he said.
Diri explained that reducing the cost of moving goods from one location to another could help bring down the prices of goods and services, describing the potential impact of CNG adoption as a “multiplier effect” across different sectors.
He said the relatively lower cost of gas compared with petrol makes CNG a viable option for reducing the operating expenses of commercial transport operators.
The governor stressed that the objective is to cushion the effect of petrol subsidy removal on Nigerians rather than return to a subsidy regime that placed considerable pressure on government finances.
“The impact is expected to be on our people—the very common man that we all talk about,” Diri said.
Diri also rejected claims that state governments had failed to account for funds accruing to them following the removal of the petrol subsidy, saying the issue could be addressed at another time.
“That cannot be true. But we will leave that debate for another day,” he said.
At the meeting, the governors also received a presentation 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 2027, both scheduled to hold in Lagos.
