The 36 state governors under the Nigeria Governors’ Forum (NGF) have rejected allegations that state governments failed to properly account for funds received following the removal of the petrol subsidy.
The governors said they would not accept responsibility for claims suggesting that sub-national governments had mismanaged or failed to account for money accruing to them after the subsidy regime was scrapped.
Bayelsa State Governor, Douye Diri, made the position known on Thursday while speaking with journalists after the NGF’s third meeting in Abuja.
Diri, who read the communique issued after the meeting on behalf of the NGF Chairman and Kwara State Governor, AbdulRahman AbdulRazaq, was asked whether the governors were prepared to accept blame over allegations concerning the management of subsidy removal funds.
He dismissed the allegation.
“That cannot be true. That cannot be true. But we’ll leave that debate for another day,” Diri said.
The issue of fuel subsidy has remained a major political and economic concern since the Federal Government ended the petrol subsidy regime.
The policy triggered a sharp rise in fuel prices and transportation costs, with its effects spreading to food, goods and other household expenses.
At their latest meeting, the governors focused largely on ways to reduce the pressure of transportation costs on Nigerians.
They backed the proposed National Affordable CNG Transit Programme, known as NACTP.
The programme is designed to encourage the conversion of vehicles to Compressed Natural Gas, support CNG-powered transport fleets and provide other infrastructure needed to make the system work.
The governors believe the initiative could help lower the cost of public transportation if implemented effectively.
According to the forum, the programme is intended to allow the lower operating cost of CNG-powered vehicles to translate into cheaper fares for passengers.
The states are expected to play a role in vehicle conversion, fleet support and the provision of necessary infrastructure.
Diri said the governors were prepared to work with private sector operators to increase the number of CNG vehicles available for public transportation.
“gas is cheaper than petrol, which will actually reduce the costs of transportation,” he said.
The governor said cheaper transportation would have an effect beyond the transport sector.
He explained that the cost of moving agricultural products and other goods from one location to another is eventually reflected in the prices paid by consumers.
“Transportation is key. Transportation is key to several other factors,” Diri said.
He gave the example of food items such as yam and garri, noting that traders and producers have to factor transportation expenses into their prices.
“Say, for instance, you are talking about foodstuffs—increase in the cost of foodstuffs. They will tell you that ‘I’m moving from point A to point B, the transport cost is XY.’
“And so for that reason, the cost of my yam, the cost of my garri… And so by the time you reduce the cost of transport, as I said earlier, it will have a multiplier effect on several others.”
The governors therefore see transportation as an important area for intervention as Nigerians continue to deal with the high cost of living.
The NGF, however, did not announce a definite date for the commencement of the CNG programme.
Diri said the details would have to be agreed upon by the governors and those behind the initiative.
“those details will be worked out between the Forum and those who have come to present to the Forum.”
The communiqué issued after the meeting also stated that the governors recognised the potential of the NACTP to ease transportation costs.
The forum said further discussions would be needed on the financing and implementation structure before the programme can be fully rolled out.
The governors’ position comes amid continued calls from different quarters for the Federal Government to reconsider the removal of the petrol subsidy.
Diri said the CNG initiative was part of the measures being considered to cushion the effect of the subsidy policy on Nigerians.
He maintained that the objective should be to reduce the pressure created by higher transportation costs rather than focus only on the price of petrol.
According to him, the removal of the subsidy has had an impact on ordinary Nigerians, making interventions aimed at reducing transportation expenses necessary.
“And that’s because there is now the removal of subsidies. And the impact is expected to be on our people—the very common man that we all talk about.”
Beyond the subsidy issue, the governors also discussed opportunities for states to benefit from major continental trade and investment events.
The Minister of Industry, Trade and Investment, Jumoke Oduwole, briefed the forum on opportunities for states to participate in CANEX Weekend 2026 and the Intra-African Trade Fair (IATF) 2027, both of which are scheduled to take place in Lagos.
The governors said the events could give states an opportunity to promote investment-ready projects, local products and tourism.
They also noted that state-based Micro, Small and Medium Enterprises could use the platforms to connect with investors and buyers from Nigeria, Africa and other parts of the world.
“Governors noted the platform’s potential to showcase investment-ready projects, promote local exports and tourism, and connect State MSMEs with African and global investors and buyers. The Forum assured the Honourable Minister of its support in achieving these objectives.”
The IATF 2027 is expected to further position Lagos as a major meeting point for African businesses, investors and policymakers.
Nigeria formally secured the hosting rights for the trade fair earlier this year, with the event scheduled for Lagos in November 2027.
CANEX Weekend 2026 is also expected to provide a platform for Nigeria’s creative and cultural industries to connect with trade and investment opportunities.
The governors said their participation would help states present their economic opportunities to a wider continental audience.
