The Federal Government must allocate approximately N880 billion annually to effectively maintain the federal road network across Nigeria, the Minister of State for Works, Mohammed Goroyo, revealed on Monday.
Goroyo made this known during an investigative hearing convened by the House of Representatives Ad-Hoc Committee probing the implementation and remittance of the five per cent road user charge on petroleum products — a critical funding mechanism established under the FERMA Amendment Act, 2007.
At the hearing, Chukwuemeka Agbasi, Managing Director of the Federal Road Maintenance Agency (FERMA), disclosed that despite provisions for a road user charge on the pump prices of petrol and diesel, the mechanism was never activated by the now-defunct Petroleum Product Pricing Regulatory Authority (PPPRA) — now replaced by the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Budget Shortfalls Threaten Road Network Sustainability
Goroyo lamented that while the agency requires N880bn annually for optimal road maintenance, budgetary allocations have consistently fallen short — with N76.3bn in 2023, N103.3bn in 2024, and a proposed N168.9bn in 2025.
“Though allocations are gradually increasing, they remain far below the threshold needed for sustainable road maintenance. This persistent funding gap forces FERMA into reactive maintenance, leading to deteriorating road conditions, escalating repair costs, and prolonged disruptions for commuters and businesses,” the minister stated.
He emphasized the urgent need for a proactive strategy, backed by sustainable funding, and called for the full implementation of the five per cent user charge on petroleum products to bridge Nigeria’s infrastructure financing gap.
FERMA Boss Calls for Sustainable Road Infrastructure Funding
Speaking at the event, FERMA’s Managing Director, Chukwuemeka Agbasi, reaffirmed the agency’s commitment under President Bola Tinubu’s Renewed Hope Agenda, aimed at revitalizing Nigeria’s infrastructure.
“Our roads are lifelines for commerce and national integration. The five per cent user charge was designed as a sustainable funding model for road maintenance. However, FERMA has faced severe funding constraints, undermining its capacity to maintain Nigeria’s expansive road network effectively,” Agbasi noted.
House of Reps Moves to Enforce User Charge Implementation
In his opening remarks, Speaker of the House of Representatives, Tajudeen Abbas, referenced a motion passed on March 19, 2024, highlighting the non-remittance of the five per cent road maintenance charge.
“We have a constitutional duty to investigate the status of these funds, ascertain the extent of the law’s violation, determine unremitted sums, and identify those responsible for the prolonged non-implementation,” Abbas declared.
He assured Nigerians that the House would ensure strong recommendations emerge from the investigation to prevent further legal breaches and streamline the remittance process.
Also speaking, Chairman of the Ad-Hoc Committee and House Committee on Rules and Business, Francis Waive, clarified that the five per cent charge has been law since 2007 and was not a new levy.
“This investigation isn’t about raising fuel prices or amending the law, but about addressing anomalies caused by non-compliance. Parliament will insist that every law it passes is respected by both individuals and government agencies,” Waive affirmed.
