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The 36 state governors, under the Nigeria Governors’ Forum (NGF), have thrown their weight behind a proposed National Affordable CNG Transit Programme (NACTP) aimed at reducing transportation fares and easing the burden of rising living costs across the country.
The governors said the initiative, which is being developed as a state-led programme, would leverage the lower operating cost of Compressed Natural Gas (CNG) to provide cheaper public transportation for Nigerians.
The decision was contained in a communiqué issued at the end of the Forum’s third meeting, held on Wednesday, August 26, 2026, and read by Bayelsa State Governor, Douye Diri.
The communiqué was signed by the Chairman of the Nigeria Governors’ Forum and Governor of Kwara State, AbdulRahman AbdulRazaq.
Under the proposed NACTP, states are expected to support the conversion of vehicles to CNG, provide fleets and facilitate the development of enabling infrastructure, while participating transport operators would commit to reduced passenger fares.
Although the governors did not announce a definite commencement date, they said further work was required to finalise the programme’s financing and implementation framework.
Responding to reporters after the meeting, Diri explained that the initiative was part of the Forum’s response to the economic pressure created by high transportation costs, particularly following the removal of the fuel subsidy.
He argued that lowering transport fares could trigger a wider reduction in the cost of goods and services because transportation constitutes a significant component of the cost of moving food and other commodities from one location to another.
“Transportation is key,” Diri said, stressing that the cost of moving goods from point A to point B is ultimately reflected in the prices paid by consumers.
According to him, reducing transportation costs through the adoption of CNG would therefore have a “multiplier effect” across several sectors of the economy.
The governor noted that gas was cheaper than petrol, making CNG a potentially viable alternative for reducing the cost of operating commercial transport vehicles.
The initiative is coming amid persistent concerns over the impact of fuel subsidy removal on household incomes and the rising cost of transportation and essential commodities.
Asked whether the governors had discussed calls by some political stakeholders for the return of the fuel subsidy, Diri said the issue was already being addressed through the proposed CNG intervention.
He said the focus was on finding practical ways to cushion the effect of subsidy removal on ordinary Nigerians rather than returning to a system that had previously imposed significant fiscal pressure.
“The impact is expected to be on our people—the very common man that we all talk about,” he said.
The Bayelsa governor, however, rejected suggestions that state governments had failed to account for funds accruing to them following the removal of the fuel subsidy.
“That cannot be true. That cannot be true. But we’ll leave that debate for another day,” he said.
The NGF communiqué said governors had “noted the initiative’s potential to ease transportation costs” and agreed that its financing and implementation framework required further consideration.
The Forum 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 (IATF) 2027, both scheduled to take place in Lagos.
The governors said the platforms could provide states with opportunities 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.
They consequently assured the minister of their support for the initiatives.
