NGF: Rejects Fuel Subsidy Accountability Denial Claims

• The Nigeria Governors Forum (NGF) has denied accusations that state governments have mismanaged or failed to account for funds received after the removal of fuel subsidies.
• Bayelsa State Governor Douye Diri, speaking for the NGF, dismissed the claims as untrue but deferred further debate on the matter.
• The NGF strongly endorsed the National Affordable CNG Transit Programme (NACTP), a state-led initiative designed to reduce transportation costs through CNG vehicle conversions and infrastructure.
• Governors agreed to further consider the financing and implementation framework for the NACTP, which aims to lower passenger fares and work with the private sector.
• The NGF also committed to participating in CANEX Weekend 2026 and the Intra-African Trade Fair (IATF) 2027 in Lagos, viewing them as key platforms for investment, exports, and connecting MSMEs with global markets.

The Nigeria Governors Forum (NGF), comprising the nation's 36 state governors, has firmly rejected claims that sub-national governments have failed to properly account for funds disbursed following the removal of fuel subsidies.

The Nigeria Governors Forum (NGF), comprising the nation's 36 state governors, has firmly rejected claims that sub-national governments have failed to properly account for funds disbursed following the removal of fuel subsidies. During a meeting held from Wednesday night into early Thursday morning at the NGF's Secretariat in Abuja, governors asserted that accusations of mismanagement regarding these subsidy removal proceeds are unfounded and should not be entertained.

Governor Douye Diri of Bayelsa State, who delivered the communique on behalf of the Forum's Chairman, Governor AbdulRahman AbdulRazaq of Kwara State, directly addressed inquiries about the accountability of these funds. He unequivocally stated, "That cannot be true. That cannot be true. But we'll leave that debate for another day," signaling a contentious stance on the issue. This collective denial underscores a significant point of contention regarding the allocation and utilization of public funds at the state level.

In a separate but related development, the NGF expressed strong support for the proposed National Affordable CNG Transit Programme (NACTP), recognizing its potential to significantly reduce transportation costs across the country. The initiative, described as state-led, aims to translate the lower operating costs of Compressed Natural Gas (CNG) into reduced passenger fares for citizens. Governors noted the NACTP's capacity to alleviate the burden of rising transport expenses, which Governor Diri identified as a key driver of national inflation.

The proposed NACTP framework envisages substantial support from state governments for CNG vehicle conversions, the expansion of CNG fleets, and the development of essential enabling infrastructure. It also includes provisions for fare commitments from participating operators, with an indicative target of lowering passenger fares. The NGF acknowledged the initiative's potential to ease transportation costs and agreed on the necessity to further deliberate on its financing mechanisms and comprehensive implementation framework. Governor Diri indicated that the Forum intends to collaborate with the private sector to facilitate the introduction of more CNG vehicles, emphasizing that gas is a more economical alternative to petrol, promising a beneficial multiplier effect across various sectors and for the common citizen.

Beyond the discussions on fuel subsidy accountability and CNG adoption, the governors also received a briefing from Dr. Jumoke Oduwole, the Minister of Industry, Trade and Investment. The presentation focused on opportunities for state participation in two major international events: CANEX Weekend 2026 and the Intra-African Trade Fair (IATF) 2027, both slated to take place in Lagos.

The NGF expressed a collective resolve to participate in these platforms, recognizing their strategic importance. Governors highlighted the potential of these events to showcase investment-ready projects from their respective states, promote local exports and tourism, and establish crucial connections between State Micro, Small, and Medium Enterprises (MSMEs) and a diverse array of African and global investors and buyers. The Forum assured the Minister of its full support in achieving these objectives, signaling a commitment to fostering economic growth and international trade at the sub-national level.

The Nigeria Governors Forum's denial of accountability for fuel subsidy funds signals a contentious issue that could lead to increased scrutiny, audits, or legal challenges regarding the allocation and use of these funds at the sub-national level. Lawyers advising state governments or public sector entities should monitor this for potential litigation risks or compliance exposures. Additionally, the strong support for the NACTP indicates forthcoming policy, regulatory, and investment opportunities in the CNG sector, requiring legal counsel for public-private partnerships, infrastructure development, and compliance with new energy transition initiatives.

Source: Original reporting via Vanguard