The Federal Government requires approximately ₦880 billion every year to maintain the country’s federal roads, Minister of State for Works, Mohammed Bello Goroyo, disclosed on Monday.
Goroyo made this known during an investigative hearing convened by the House of Representatives ad hoc committee on the implementation and remittances of the 5 percent user charge for road maintenance under the Federal Roads Maintenance Agency (FERMA).
He lamented that the consistent shortfall in road maintenance funding has severely affected the upkeep of Nigeria’s vast road network, noting that while the 5 percent user charge—legally deducted from the pump prices of petrol and diesel—is supposed to bridge the gap, it has never been implemented.
“While the agency requires an estimated ₦880 billion annually for optimal road conditions, budgetary allocations have consistently fallen short—₦76.3 billion in 2023, ₦103.3 billion in 2024, and ₦168.9 billion budgeted for 2025,” he stated.
The FERMA Managing Director, Chukwuemeka Agbasi, confirmed that the user charge, as provided under the FERMA Amendment Act of 2007, has never been enforced by the Petroleum Products Pricing Regulatory Agency (PPPRA) or its successor, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Goroyo said that under President Bola Tinubu’s Renewed Hope Agenda, the Works Ministry remains committed to delivering infrastructure that promotes economic growth and national cohesion. He emphasized that road maintenance is a national imperative, not merely a policy decision.
“Despite the legal provision, FERMA and the ministry have been unable to access the user charge since 2007,” he said, describing the investigative hearing as a collaborative effort to identify roadblocks and restore financial integrity to Nigeria’s road management system.
Speaker of the House, Hon. Abbas Tajudeen, who declared the hearing open, expressed concerns over the prolonged non-implementation of the user charge law. He noted that the 5 percent deduction was meant to be split between FERMA and state road maintenance agencies at 40 and 60 percent respectively.
“We owe Nigerians the obligation to conduct a thorough investigation into this statutory violation,” he said, referencing Sections 88 and 89 of the 1999 Constitution. “This hearing must determine the extent of unremitted funds and identify those responsible for the failure of enforcement.”
He called on the committee to quantify the actual accruals from the 5 percent charge since 2007 and recommend mechanisms to prevent further abuse of the law and ensure timely remittance moving forward.
FERMA’s MD further revealed that former President Goodluck Jonathan had issued a directive in 2011 for a template to facilitate implementation of the user charge, but the effort stalled due to lack of action from the responsible agencies.
Chairman of the committee, Hon. Francis Waive, emphasized that the user charge is not a new tax but a long-standing legal requirement that must now be enforced. “This is the best time to act,” he said, stressing the House’s commitment to upholding laws it enacts.
The investigation continues as the committee engages relevant stakeholders to unlock funding avenues crucial to improving Nigeria’s ailing road infrastructure.
