Nigeria’s 36 state governors have endorsed moves to introduce a state‑led compressed natural gas (CNG) transport programme designed to lower passenger fares and ease rising transportation costs.
The governors, under the Nigeria Governors’ Forum (NGF), gave their support after considering the proposed National Affordable CNG Transit Programme (NACTP) at their third meeting held on Wednesday, August 26, 2026.
Bayelsa State Governor Senator Douye Diri read the communiqué at the end of the meeting, signed by NGF Chairman and Kwara State Governor AbdulRahman AbdulRazaq.
The initiative is structured to translate the lower operating cost of CNG into cheaper fares for commuters. It envisages state governments supporting vehicle conversions, acquiring CNG‑powered fleets, and developing enabling infrastructure.
In return, participating transport operators would commit to fare reductions, creating a direct link between cheaper CNG operations and passenger fares.
The communiqué stated: “The proposal envisages State support for CNG vehicle conversions, fleets and enabling infrastructure, alongside fare commitments from participating operators, with an indicative target of reducing passenger fares.”
Financing and Implementation Questions
The governors agreed that further consideration was required on financing and implementation before rollout. They recognised the potential of the programme to ease transportation costs but stressed that its framework needed refinement.
The development comes amid sustained pressure on household incomes from transport costs, with cheaper fuel alternatives increasingly viewed as vital to reducing the burden of public mobility.
Unlike programmes focused solely on expanding CNG adoption, the NACTP is specifically structured to ensure operational savings are passed on to commuters. Enforcement of fare commitments will therefore be critical to its success.
Parallel Focus on Trade Opportunities
The meeting also considered Nigeria’s opportunities in intra‑African trade and investment. Minister of Industry, Trade and Investment Dr Jumoke Oduwole briefed the Forum on state participation in CANEX Weekend 2026 and the Intra‑African Trade Fair (IATF) 2027, both scheduled to take place in Lagos.
The governors noted that the events could provide platforms for states to showcase investment‑ready projects, promote locally produced goods and services, boost tourism, and connect micro, small and medium enterprises with African and international investors.
The Forum assured the minister of its support for the objectives of the events.
Despite backing the concept, the governors acknowledged that details remain unresolved. The communiqué did not disclose the number of vehicles targeted, the expected fare reduction, the proposed funding contribution of individual states, or a specific timeline.
It also did not indicate whether the Federal Government would provide financial support beyond the state‑led framework.
The NGF’s position signals growing interest in using CNG to address transport affordability while encouraging a shift towards cheaper alternative fuels.
