₦15.8tn Subsidy Savings: Governors Reject Blame Over Management of Funds

The 36 state governors have rejected claims that state governments failed to properly account for funds accruing from the removal of petrol subsidy, insisting that they should not be held responsible for the management of the proceeds.

Bayelsa State Governor, Douye Diri, stated this on behalf of the Nigeria Governors’ Forum (NGF) after its meeting in Abuja on Thursday.

Diri was responding to questions on whether governors would accept responsibility for the alleged mismanagement of funds received following the removal of the petrol subsidy.
“That cannot be true. That cannot be true. But we’ll leave that debate for another day,” he said.

The controversy followed a disclosure by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, that the removal of petrol subsidy generated ₦15.8 trillion for the Federation between June 2023 and December 2025.

According to Oyedele, the Federal Government received ₦5.4 trillion, while ₦10.4 trillion was distributed to state and local governments through the Federation Account Allocation Committee (FAAC).

Meanwhile, the governors have thrown their weight behind the proposed National Affordable CNG Transit Programme (NACTP), aimed at reducing transportation costs and easing the economic burden on Nigerians.

Diri said the initiative would promote the conversion of vehicles to compressed natural gas (CNG), expand CNG-powered transport fleets and support the development of the required infrastructure.

The governors maintained that prioritising transportation was crucial because the cost of moving people and goods has a direct impact on the prices of food and other essential commodities.

The NGF said the details and implementation framework of the programme would be developed through consultations between the governors and the proponents of the initiative.