Governors move to reduce transport fares under CNG conversion scheme

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 The Nigeria Governors’ Forum (NGF) is considering reducing
transportation fares nationwide under the proposed national affordable CNG
transit programme (NACTP).

 

In a communiqué issued after the forum’s meeting held on
Wednesday in Abuja and signed by AbdulRahman AbdulRazaq, governor of Kwara and
chairman of the NGF, the initiative will leverage the lower operating costs of
compressed natural gas (CNG) to provide cheaper public transportation for
Nigerians.

Under the proposed programme, states are expected to support
the conversion of vehicles to CNG, provide fleets and facilitate the
development of supporting infrastructure, while participating transport
operators would, in turn, commit to reducing passenger fares.

The governors did not specify a commencement date, but added
that further work was needed to finalise the programme’s financing and
implementation framework.

Speaking with journalists after the meeting, Douye Diri,
governor of Bayelsa, said the initiative is part of the NGF’s response to the
economic pressure from high transportation costs, particularly following the
removal of the petrol subsidy.

He said reducing transport fares could trigger a broader
reduction in the cost of goods and services, since transportation accounts for
a significant share of the cost of moving food and other commodities.

“Transportation is key,” Diri said.

The governor said the cost of moving goods from one location
to another is ultimately reflected in consumer prices, noting that reducing
transportation costs through CNG adoption could have a “multiplier effect”
across several sectors of the economy.

The governor said gas is cheaper than petrol, making CNG a
potentially viable alternative for reducing the operating costs of commercial
transport vehicles.

He said the focus is on finding practical ways to cushion
the impact of subsidy removal on 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,” the governor said.

Diri also dismissed suggestions that state governments had
failed to account for funds accruing to them following the removal of the
petrol subsidy.

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

The NGF also 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.

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