Key Points
- Nigeria’s governors have backed the proposed National Affordable CNG Transit Programme to reduce transport fares.
- The initiative will involve state support for CNG vehicle conversions, fleets and supporting infrastructure.
- Governors say lower transport costs could ease broader cost-of-living pressures following fuel subsidy removal.
Main Story
The Nigeria Governors’ Forum (NGF) has backed the proposed National Affordable Compressed Natural Gas (CNG) Transit Programme (NACTP), aimed at reducing transportation costs and easing the impact of petrol subsidy removal on Nigerians.
The governors expressed their support in a communiqué issued after the forum’s third meeting, held on Wednesday night in Abuja and signed by its Chairman, Gov. AbdulRahman AbdulRazaq of Kwara.
Gov. Douye Diri of Bayelsa, who read the communiqué, said the proposed programme was a state-led initiative intended to use the lower operating cost of CNG vehicles to bring down transport fares.
Under the proposal, participating states would support the conversion of vehicles to CNG, provide or facilitate access to CNG-powered fleets and develop the infrastructure required to support the programme.
Transport operators participating in the scheme would, in turn, commit to fare reductions, with the programme targeting lower costs for passengers.
Diri said the governors recognised the potential of the initiative to reduce the burden of transportation on citizens, but added that its financing and implementation arrangements required further consideration.
Speaking with journalists after the meeting, Diri said the timeline for implementing the programme would be determined through discussions between the NGF, stakeholders and those who presented the proposal.
He said the governors believed that reducing transportation costs could have effects beyond the transport sector because higher fares contribute to increases in the prices of other goods and services.
According to him, collaboration with the private sector to expand the use of CNG could therefore help reduce transportation expenses and extend the benefits to ordinary Nigerians.
Diri said the forum also considered opportunities for states to participate in CANEX Weekend 2026 and the Intra-African Trade Fair (IATF) 2027, both of which are scheduled to take place in Lagos.
The opportunities were presented to the governors by the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole.
The governor said the events could provide states with opportunities to showcase investment-ready projects, promote local exports and tourism, and connect their Micro, Small and Medium Enterprises (MSMEs) with investors and buyers from Africa and other parts of the world.
He said the governors assured the minister of their support for the objectives of the events.
The Issues
Transportation costs have become a major component of household expenses following the removal of petrol subsidy, while higher transport fares have also contributed to increased costs across other parts of the economy.
The proposed NACTP is therefore intended to address the issue by supporting a shift towards CNG-powered transport, which the governors said could reduce vehicle operating costs and, consequently, passenger fares.
However, the forum acknowledged that questions surrounding the financing and implementation of the programme still need to be resolved before its rollout.
The proposal also places a significant role on state governments, which are expected to support vehicle conversions, fleets and infrastructure while participating transport operators commit to lower fares.
Diri also rejected suggestions that sub-national governments had failed to properly account for funds received following the removal of petrol subsidy, although he declined to engage the issue in detail.
What’s Being Said
“The forum received a presentation on the proposed national affordable transit programme, a state-led initiative designed to translate the lower operating cost of CNG into reduced transport fares for citizens.” — Douye Diri, Governor of Bayelsa
“The rise in the cost of every other thing is also hinged on the increase in transport.” — Douye Diri, Governor of Bayelsa
“Now that the forum is going in league with the private sector to see how we can bring in CNG, this will actually reduce the costs of transportation and it will have a multiplier effect on every other sectors.” — Douye Diri, Governor of Bayelsa
“The impact is expected to be on our people, the very common man that we all talk about.” — Douye Diri, Governor of Bayelsa
What’s Next
The NGF and relevant stakeholders are expected to work out the financing and implementation framework for the NACTP.
The timing of the programme’s rollout will also be determined through further discussions between the governors and stakeholders involved in the proposal.
The forum is expected to continue supporting state participation in CANEX Weekend 2026 and IATF 2027, with the events aimed at expanding opportunities for state-owned projects, local businesses, exports and tourism.
Bottom Line
The governors’ backing gives the proposed CNG transit programme a wider sub-national platform as stakeholders work out how to finance and implement it. The initiative is intended to use cheaper CNG operations to lower transport fares and ease some of the wider cost-of-living pressures associated with higher transportation costs.
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