The Nigeria Governors’ Forum (NGF) has unveiled plans for a new nationwide initiative aimed at bringing down transportation costs for millions of Nigerians.
The proposed programme, known as the National Affordable CNG Transit Programme (NACTP), is expected to encourage the use of compressed natural gas (CNG) in commercial transportation following the removal of the petrol subsidy.
Under the proposed arrangement, state governments will support the conversion of commercial vehicles to CNG, provide transport fleets and assist with the development of gas refuelling infrastructure. Transport operators who benefit from the initiative would, in return, be expected to reduce fares for passengers.
The proposal was announced in a communiqué issued after a meeting of the governors in Abuja. However, no official commencement date has been announced, as issues surrounding funding and implementation are still being worked out.
Bayelsa State Governor Douye Diri said the plan could have benefits beyond cheaper transport fares. According to him, reducing the cost of moving people and goods could also help bring down the prices of food and other essential commodities.
“Transportation is key,” Diri said, noting that the cost of transporting goods is directly reflected in the prices consumers eventually pay.
He added that the wider adoption of CNG could create a “multiplier effect” across the economy because the fuel is cheaper than petrol for commercial vehicles.
Speaking on the expected beneficiaries, the governor said: “The impact is expected to be on our people — the very common man that we all talk about.”
The governors believe the proposed CNG programme could provide practical relief for Nigerians struggling with the rising cost of transportation and the wider effects of petrol subsidy removal.
Diri also dismissed allegations that state governments had failed to properly account for funds received after the subsidy removal, stating: “That cannot be true. But we will leave that debate for another day.”
