UPDATED: Governors Deny Mismanaging Subsidy Funds, Support CNG Transport Initiative

The Nigeria Governors’ Forum (NGF) has rejected allegations that state governments have failed to properly account for funds received following the removal of the petrol subsidy.

Bayelsa State Governor, Douye Diri, who spoke after the governors’ meeting in Abuja, dismissed suggestions that sub-national governments should be blamed for mismanagement of subsidy-removal proceeds.

“That cannot be true. That cannot be true. But we’ll leave that debate for another day,” Diri said when asked whether the governors accepted responsibility for the alleged lack of accountability.

The governors, however, expressed support for the proposed National Affordable CNG Transit Programme (NACTP), describing it as a potential solution to the rising cost of transportation across the country.

The programme is designed to encourage states to support the conversion of vehicles to Compressed Natural Gas (CNG), provide CNG-powered fleets and develop other necessary infrastructure. Participating transport operators would also be expected to commit to lower passenger fares.

According to Diri, the initiative could significantly reduce transportation costs because gas is cheaper than petrol. He said the reduction would have a wider impact on the prices of food and other essential commodities.

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“Transportation is key to several other factors,” the governor explained, noting that the cost of moving goods from one location to another directly affects the final prices paid by consumers.

The NGF said reducing transport costs could therefore help ease the financial burden on Nigerians, particularly amid the economic pressures associated with fuel subsidy removal.

The governors noted that the financing and implementation framework of the CNG programme still requires further consideration. Diri said the timeline and other details would be worked out between the Forum and the proponents of the initiative.

The meeting also featured a presentation by the Minister of Industry, Trade and Investment, 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.

The governors said the events could provide states with opportunities to showcase investment-ready projects, promote local exports and tourism, and connect small and medium-sized businesses with investors and buyers across Africa and beyond.

The Forum subsequently pledged its support for the ministry’s efforts to increase state participation in the programmes.

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