The Nigeria Governors’ Forum has rejected allegations that state governments have failed to account properly for increased funds received following the removal of petrol subsidy, while backing a proposed nationwide Compressed Natural Gas transport programme aimed at reducing transport fares and easing the cost of living.
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Bayelsa State Governor, Senator Douye Diri, stated the Forum’s position while responding to journalists after the third meeting of the NGF on Thursday.
Diri, who read the communiqué issued at the end of the meeting, was asked whether the governors had discussed the continuing controversy surrounding the removal of fuel subsidy, including calls by some political actors for its restoration and questions over how states had utilised increased revenues since the policy took effect.
According to him, the governors addressed the economic impact of subsidy removal partly through discussions on the proposed National Affordable CNG Transit Programme, which is designed to take advantage of the lower operating cost of CNG to reduce transportation fares.
“Now, these are part of the issues that have been addressed, particularly with the number two that I just talked about today about transportation fares,” Diri said.
The governor argued that transportation costs are central to the wider cost-of-living challenge because increases in the cost of moving people and goods are eventually reflected in the prices of food and other commodities.
“And you see that the rise in the cost of every other thing is also hinged on the increase in transport,” he said.
Diri said the governors were looking towards collaboration with the private sector to expand the use of CNG, which he described as cheaper than petrol, with the expectation that lower operating costs would translate into reduced fares.
“And it will have a multiplier effect on every other sector,” he said.
He added that the ultimate objective of interventions following subsidy removal should be to reduce the burden on ordinary Nigerians.
“And that’s because there is now the removal of subsidies. And the impact is expected to be on our people the very common man that we all talk about,” Diri said.
Asked directly whether the governors accepted criticism that sub-national governments had not sufficiently accounted for funds received following the removal of subsidy, Diri rejected the allegation.
“That cannot be true. That cannot be true. But we’ll leave that debate for another day,” he said.
When pressed on whether concentrating on transportation would leave other sectors without sufficient intervention, Diri maintained that transport costs affect virtually every segment of the economy.
“Transportation is key. Transportation is key to several other factors,” he said.
Using food prices as an example, the governor said traders and producers routinely factor transport expenses into the prices ultimately paid by consumers.
“Say, for instance, you are talking about foodstuffs — increase in the cost of foodstuffs. They will tell you that ‘I’m moving from point A to point B, the transport cost is XY.’
“And so for that reason, the cost of my yam, the cost of my garri, this…” he said.
Diri maintained that bringing transport fares down would consequently reduce pressure across several sectors.
“And so by the time you reduce the cost of transport, as I said earlier, it will have a multiplier effect on several other,” he added.
Earlier at the meeting, the governors received a presentation on the proposed National Affordable CNG Transit Programme.
According to the communiqué, the state-led initiative is intended to convert the lower operating cost of Compressed Natural Gas into cheaper transportation for citizens.
The proposal envisages state government support for the conversion of vehicles to CNG, acquisition or deployment of CNG-powered fleets and development of supporting infrastructure.
Participating transport operators would, in return, be expected to make commitments on reduced fares to ensure that the savings from cheaper fuel are passed on to commuters.
The governors acknowledged the potential of the programme to reduce transportation costs but said its financing structure and implementation framework would require further consideration before full deployment.
The discussion comes amid continuing public scrutiny of the financial benefits accruing to the three tiers of government following the removal of petrol subsidy and calls for governments to demonstrate how additional revenues are being translated into improvements in the lives of Nigerians.
Beyond the subsidy and transportation debate, the Forum also received a presentation from the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, on opportunities available to states through CANEX Weekend 2026 and the Intra-African Trade Fair 2027, both scheduled to take place in Lagos.
The governors said participation in the two platforms could provide states with opportunities to showcase investment-ready projects, promote tourism and locally produced goods, and connect Micro, Small and Medium Enterprises with potential investors and buyers from Africa and other parts of the world.
The Forum consequently assured the minister of its support for the objectives of the initiatives.
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