The Nigeria Governors’ Forum, NGF, has backed further consideration of the proposed National Affordable CNG Transit Programme, NACTP, aimed at reducing transportation costs and cushioning the impact of rising living expenses on Nigerians.
The proposed initiative is designed to leverage the lower operating cost of Compressed Natural Gas, CNG, to provide more affordable public transportation and reduce passenger fares across participating states.
The position was contained in a communiqué issued at the end of the Forum’s third meeting in Abuja, chaired by the NGF Chairman and Kwara State Governor, AbdulRahman AbdulRazaq.
Under the proposed state-led programme, participating states would support the conversion of vehicles to CNG, provide or support CNG-powered transport fleets, and develop other necessary infrastructure.
In return, transport operators would be expected to reflect the reduced operating costs in passenger fares, making public transportation more affordable for commuters.
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However, the Governors said the financing and implementation framework of the programme would require further consideration before full implementation.
Responding to questions from journalists on the timeline for the initiative, Bayelsa State Governor, Senator Douye Diri, said no definite date had been fixed, explaining that the details would be worked out between the Forum and stakeholders who presented the proposal.
The Forum also linked the rising cost of transportation to increases in the prices of food and other essential commodities, noting that the cost of moving goods from one location to another is ultimately passed on to consumers.
“Reducing transportation costs through CNG could therefore have a multiplier effect across the economy, particularly by lowering the cost of transporting agricultural produce and other goods,” Governor Diri said.
He cited commodities such as yam and garri, explaining that transportation costs form part of the final price consumers pay for such products.
According to him, an intervention in the transportation sector could therefore provide relief beyond commuters, potentially helping to reduce pressure on the prices of goods and services.
The Governor also situated the proposed initiative within ongoing efforts to cushion the effects of fuel subsidy removal, which has increased the cost of petrol and, consequently, transportation.
“The expected benefit of cheaper CNG-powered transportation would ultimately reach ordinary Nigerians, particularly those most affected by rising transportation costs,” he said
On concerns that state governments have not been sufficiently accountable for funds received following the removal of fuel subsidy, Governor Diri rejected the allegation, describing it as untrue.
He, however, declined to engage further on the issue, saying the debate could be addressed at another time.
Meanwhile, the Forum also received a presentation from the Minister of Industry, Trade and Investment, Dr 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 State, South-West Nigeria.
The Governors said the two platforms could provide opportunities for states to showcase investment-ready projects, promote local exports and tourism, and connect state-based Micro, Small and Medium Enterprises, MSMEs, with African and international investors and buyers.
The Forum assured the Minister of its support towards achieving the objectives of the events.
