The Nigeria Governors’ Forum (NGF) is considering a proposal to lower transportation costs nationwide through the proposed National Affordable CNG Transit Program (NACTP).
According to a statement signed by Kwara State Governor and NGF Chairman AbdulRahman AbdulRazaq following the forum’s meeting on Wednesday in Abuja, the program aims to leverage the lower operating costs of compressed natural gas (CNG) to provide more affordable public transit for Nigerians.
Under the proposed initiative, participating transport operators would commit to reducing passenger fares in exchange for state government support, including assistance with vehicle CNG conversion, fleet provision, and the development of necessary refueling infrastructure.
Although the governors did not disclose a launch date, they stated that further work is required to finalize the program’s financing and operational framework.
Speaking to journalists during the meeting, Bayelsa State Governor Douye Diri explained that the initiative forms part of the NGF’s broader effort to mitigate the financial strain caused by high transportation costs following the removal of the petrol subsidy.
He added that because transport expenses represent a significant portion of food and commodity distribution costs, lowering transportation fares could ultimately drive down prices across goods and services nationwide.
The governor described CNG conversion as a practical alternative for reducing the operational costs of commercial transit vehicles, citing its affordability compared to petrol.
He emphasized that rather than returning to a subsidy structure that previously created significant financial strain for the country, the government’s focus remains on establishing sustainable strategies to cushion the economic impact of the subsidy removal.
Also Read: How Financing Solutions Are Scaling CNG Conversion Across Nigeria
Backstory…
The governors’ decision comes against the backdrop of the continuing cost-of-living pressures that followed President Bola Tinubu’s removal of the petrol subsidy in May 2023. One of the most immediate consequences was a sharp increase in transport fares as petrol prices rose, with the higher cost of moving people and goods also feeding into food and other commodity prices.
The Nigeria Governors’ Forum (NGF) is now backing a proposed National Affordable CNG Transit Programme (NACTP) as an alternative way of cushioning that impact.
The proposal was considered at the governors’ third meeting on August 26, 2026, and is designed specifically to convert the lower operating cost of Compressed Natural Gas (CNG) into cheaper fares for passengers.
Read Also: The reality of Nigeria CNG infrastructure despite big money investment.
