Details of Nigerian governors meeting emerge
Governors of the 36 states have resolved to explore ways of financing and expanding the use of Compressed Natural Gas-powered vehicles as part of efforts to reduce transportation costs and ease the rising prices of goods and services.
The decision was reached on Wednesday night during the third meeting of the Nigeria Governors’ Forum (NGF) held at the NGF Secretariat in Abuja.
The governors also agreed to deepen collaboration with private investors to accelerate the conversion of vehicles to CNG and expand the infrastructure required for its deployment across the country.
The resolution followed a presentation on the proposed National Affordable CNG Transit Programme, described as a state-driven initiative designed to pass the lower operating costs associated with CNG on to commuters through reduced transport fares.
In a communique signed by the NGF Chairman and Kwara State Governor, AbdulRahman AbdulRazaq, the governors said the proposal would involve state support for vehicle conversions, CNG-powered fleets and supporting infrastructure.
The communique 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.”
The forum acknowledged that cheaper transportation could help bring down the cost of goods and services and agreed to further examine the proposed financing and implementation arrangements.
Speaking with journalists after the meeting, Bayelsa State Governor, Duoye Diri, said the initiative could help address some of the economic pressures associated with the removal of fuel subsidy.
Diri argued that lowering transportation costs could have a wider impact because the cost of moving goods from one location to another is often reflected in their final prices.
He said, “Now that the forum (NGF) is going in league with the private sector to see how we can bring in CNG, it will actually reduce the cost of transportation. You know that gas is cheaper than petrol and others.”
According to him, cheaper transportation would have a ripple effect across various sectors of the economy.
He added that the initiative “will have a multiplier effect on every other sector, and that is because of the removal of fuel subsidy, and the impact is expected to be on our people, that is, the very common man that we all talk about.”
When asked whether state governments could be accused of failing to properly account for revenues accruing from the removal of fuel subsidy, Diri dismissed the suggestion.
He said, “That cannot be true. That cannot be true, but we leave that debate for another day.”
The governor also explained why the governors were prioritising transportation rather than directly targeting food prices.
According to him, the cost of transportation is a major factor influencing the prices consumers pay for agricultural produce and other commodities.
Diri added, “Transportation is key to several other factors.”
“A seller will tell you that he/she move from point A to point B, and the transport cost is XY, and so, for that reason, the cost of my yam; the cost of my gari, and others have increased. So, as I said earlier, our focus will have a multiplier effect.
