Speaker Abbas inaugurates C’ttee on 5 per cent road user charge

By Msugh Ityokura

The Speaker, House of Representatives, Tajudeen Abbas Monday, inaugurated an Ad-hoc committee of the House to investigate the implementation and remittance of a five per cent user charge for road maintenance under the provisions of the Federal Roads Maintenance Agency, FERMA (Amendment) Act, 2007.

The House had on 19th March considered a motion brought by a Member of the House which showed non implementation of remittance of the five per cent user charge on petroleum products meant for road maintenance under the Federal Roads Maintenance Agency (FERMA) Amendment Act, 2007

The House had expressed concern over the failure of relevant agencies of government to enforce the statutory charge and remittance of the fund to FERMA and adopted the motion which resulted in the constitution of the ad-hoc committee to investigate the circumstances for the failure of the relevant agencies of government to comply with the section of the Act.

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Abbas made reference to Section 14(1)(h) of the FERMA Amendment Act 2007 which stipulates that five per cent of the pump price of petrol and diesel should be allocated to FERMA and the State Maintenance Agencies in the proportion of 40% and 60% respectively

According to the speaker, the section of the Act has not been complied with despite different attempts by the National Assembly through their oversight activities to compel compliance

“This has somewhat affected the operations of the beneficiary agencies of government and by extension the Nigerian people who ply public roads.

‘As Representatives of the people, we owe Nigerians the obligation by sections 88 and 89 of the Constitution of the Federal Republic of Nigeria 1999 (as amended) to conduct a comprehensive investigation into the status of the 5% user charge to determine the extent of the violation of the law and the amount of money unremitted and those responsible for the non-implementation.

The assignment for this Committee is clear: Nigeria now looks up to you to ask the relevant questions and scan through the necessary documents to establish how much has accrued from the collection of the 5% user charge from the date of commencement of the law till the time of this investigation and how much standing to the benefit of FERMA and similar agencies at the state level” Abbas said

He charged the committee to make strong recommendations on how to forestall further abuse of the law and streamline the remittance processes for ease of access to the funds by the relevant government agencies

The minister of state for works, Bello Muhammed Goronyo said the 5% user charge, as enshrined in the FERMA Act, was designed to serve as a sustainable funding mechanism for road maintenance and rehabilitation

“However, for years, FERMA has grappled with severe funding inadequacies, hampering its ability to maintain our vast road network effectively.

‘While the agency requires an estimated 880 billion naira annually for optimal road conditions, budgetary allocations have consistently fallen short—N76.3 billion in 2023, N103.3 billion in 2024, and N168.9 billion budgeted for 2025. Though these figures show gradual increases, they remain far below the necessary threshold for sustainable road maintenance” he said

This persistent funding gap he noted has forced FERMA into a reactive mode of maintenance rather than a preventive approach.

“The consequences of this are glaring-deteriorating road conditions, increased repair costs, and prolonged disruptions for commuters and businesses alike. A proactive strategy, backed by adequate funding, is essential to ensuring smooth, safe, and efficient roadways nationwide” he stated

The dedicated funding stream Goronyo noted offers a viable solution to bridge the financial gap, providing consistent resources to address Nigeria’s infrastructure needs without over-reliance on annual budget appropriations.

“This investigation by the Ad-Hoc Committee is more than an oversight function—it is a collaborative effort to identify challenges and establish robust mechanisms for efficient resource utilization” he said.