The 36 state governors under the Nigeria Governors’ Forum have rejected allegations that state governments failed to properly account for funds accruing from the removal of the petrol subsidy.
The governors dismissed suggestions that sub-national governments should be held responsible for alleged poor management of the additional revenues generated since the subsidy regime was scrapped.
The position was disclosed after the governors held their third meeting at the NGF Secretariat in Abuja, where they also discussed measures to reduce the impact of rising transportation costs on Nigerians.
Bayelsa State Governor, Douye Diri, who addressed journalists after the meeting, was asked whether the governors would accept responsibility for claims that states had failed to account for subsidy-removal proceeds.
Diri rejected the allegation, saying the claim was untrue, while indicating that the governors would not engage in the debate at that time.
The meeting also focused heavily on the proposed National Affordable CNG Transit Programme, a state-led initiative aimed at using cheaper compressed natural gas to reduce transportation costs.
Under the proposal, state governments would support the conversion of vehicles to CNG, provide fleets and other necessary infrastructure, while participating transport operators would commit to reducing passenger fares.
The governors said the programme could help ease the pressure created by rising transportation costs, although they acknowledged that its financing and implementation framework still required further consideration.
Diri explained that transportation costs have a direct effect on the prices of food and other essential commodities because higher transport expenses are passed on to consumers.
He said the governors therefore considered reducing transportation costs a practical way of cushioning Nigerians from the wider effects of the subsidy removal.
According to him, the Forum plans to work with private-sector operators to increase the number of CNG-powered vehicles available in the country.
Diri argued that because gas is cheaper than petrol, wider adoption of CNG could reduce transportation expenses and eventually lower costs across other sectors of the economy.
The governors also received a briefing from 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 2027, both scheduled to take place in Lagos.
The Forum said participation would give states opportunities to showcase investment-ready projects, promote exports and tourism, and connect small and medium-sized businesses with African and international investors.
On the wider debate over the removal of fuel subsidies, Diri said initiatives such as the proposed CNG transport programme were part of efforts being considered to reduce the burden on Nigerians.
He maintained that lowering transportation costs could have a wider economic effect because the cost of moving people and goods influences the prices of food and other necessities.
The governors' position comes amid continuing public debate over how additional revenues generated after the removal of the petrol subsidy have been distributed and managed by different levels of government.
