Governors of the 36 states of the federation have backed a new state-led initiative to reduce transportation fares through the deployment of Compressed Natural Gas (CNG), saying cheaper transport costs could trigger a wider reduction in the prices of food and other essential goods in the country.
The governors made their position known in a communique issued at the end of their meeting in Abuja on Wednesday night, where they deliberated on major economic and governance issues affecting the country.
Douye Diri, Bayelsa State governor, who read the communique, said the Nigerian Governors’ Forum (NGF) received a presentation on the proposed National Affordable CNG Transit Programme (NACTP), designed to translate the lower operating cost of CNG into cheaper fares for commuters.
AbdulRahman AbdulRazaq, Kwara State governor and Chairman of the Forum, signed the communique.
The governors’ position came against the backdrop of the continuing impact of petrol subsidy removal, which has significantly altered transportation costs and household spending since the reform was introduced by the federal government in 2023.
The proposed programme envisages state support for CNG vehicle conversions, fleet deployment and enabling infrastructure, alongside fare commitments from participating transport operators.
The governors, however, said the financing and implementation framework of the initiative required further consideration, and acknowledged its potential to ease the burden of high transportation costs on Nigerians.
Diri said the initiative was particularly important because rising transport costs had contributed significantly to increases in the prices of food and other commodities.
“Transportation is key to several other factors,” Diri told journalists after reading the communique.
“For instance, when you are talking about foodstuffs and the increasing cost of foodstuffs, they will tell you that they are moving from point A to point B and the transport cost is high,” Governor Diri said.
He said reducing transport fares through CNG would have a “multiplier effect” across the economy because cheaper movement of goods and people could lower the cost of commodities.
“You know that gas is cheaper than petrol and others, which will actually reduce the costs of transportation, and it will have a multiplier effect on every other sector,” he said.
Diri also dismissed suggestions that the states should accept blame over questions surrounding the utilisation of increased revenues accruing to governments following the removal of the petrol subsidy, saying the issue would be addressed at another time.
He said transportation was prioritised at the meeting because of its direct connection with the cost of food and other basic commodities.
Diri also disclosed that the forum received a presentation from Jumoke Oduwole, Minister of Industry, Trade and Investment, 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 trade 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 with African and global investors and buyers.
The NGF assured Oduwole of its support for the initiatives, stressing the importance of greater state participation in programmes capable of expanding investment, trade and economic opportunities across the country.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
