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Fuel Subsidy: Nigerian Governors Take Action to Cut Transport Fares Nationwide


  • The Nigeria Governors’ Forum proposed a national CNG transit programme to reduce public transportation costs across the country
  • States are expected to support vehicle conversions and infrastructure development under the plan, with transport operators committing to lower fares
  • Bayelsa State Governor Douye Diri said cheaper transport fares could trigger a broader drop in the cost of goods and services for ordinary Nigerians

Legit.ng journalist Adekunle Dada has over 8 years of experience covering metro, government policy, and international issues

FCT, Abuja – The Nigeria Governors’ Forum (NGF) is considering a new national programme that would use compressed natural gas (CNG) to bring down public transportation fares.

The state governors are looking for ways to ease the financial burden on Nigerians since the removal of the petrol subsidy.

Nigerians governors plan CNG initiative to ease transport costs
Nigerian governors propose a CNG programme to slash transport costs. Photo credit: NGF
Source: Twitter

As reported by TheCable, the NGF announced the proposed National Affordable CNG Transit Programme (NACTP) in a communiqué issued after its meeting on Wednesday in Abuja.

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The document was signed by Kwara Governor AbdulRahman AbdulRazaq, who chairs the forum.

Under the proposed arrangement, state governments would support the conversion of commercial vehicles to CNG, provide fleets and help develop the necessary fuelling infrastructure.

In return, transport operators who join the programme would be expected to reduce passenger fares.

The governors gave no start date for the initiative, acknowledging that more work remains to be done on financing and the implementation framework.

Why governors say CNG could work

Bayelsa Governor Douye Diri, speaking to journalists after the meeting, said the initiative is the NGF’s direct response to the rising cost of transportation following subsidy removal.

According to The Nation, Diri argued that bringing down transport costs would have a ripple effect on the broader economy, since moving food and other commodities makes up a large portion of what consumers eventually pay.

“Transportation is key,” Diri said, adding that the cost of moving goods between locations feeds directly into consumer prices.

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He said adopting CNG could produce a “multiplier effect” across several sectors, given that gas is cheaper than petrol as a fuel for commercial vehicles.

The governor stressed that the focus remains on practical steps to cushion the impact of subsidy removal on ordinary citizens rather than revisiting a subsidy model that previously placed heavy pressure on government finances.

“The impact is expected to be on our people — the very common man that we all talk about,” he said.

Diri also pushed back against suggestions that state governments had not properly accounted for funds received following the petrol subsidy removal.

“That cannot be true. But we will leave that debate for another day,” he said.

CNG Transit Initiative: Governors Aim to Ease Transport Burden on Citizens
NGF’s new national CNG plan: A hope for cheaper transport fares for Nigerians. Photo credit: NGF
Source: Twitter

Trade and investment also on agenda

Separately, the forum received a presentation from Jumoke Oduwole, Minister of Industry, Trade and Investment, on how states could participate in CANEX Weekend 2026 and the Intra-African Trade Fair (IATF) 2027, both of which are scheduled to hold in Lagos.

Shehu Sani reacts to Atiku’s fuel subsidy promise

Meanwhile, Legit.ng reported that the former Kaduna Central Senator Shehu Sani spoke at a press conference in Abuja to reject Atiku Abubakar’s plan to restore fuel subsidy.

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Sani argued Nigeria spent between N3 trillion and N4 trillion on subsidies, calling the policy economically unsustainable for an oil-producing nation.

The former senator also weighed in on the 2027 presidential race, declaring his support for a southern presidential candidate.

Source: Legit.ng





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