Reps Probe Unpaid 5% Fuel Levy For Road Repairs

The Speaker of the House of Representatives, Abbas Tajudeen, has ordered a thorough investigation into the failure of relevant government agencies to implement and remit the statutory 5 per cent road maintenance user charge as stipulated by the Federal Roads Maintenance Agency (FERMA) Amendment Act of 2007.

Declaring open an investigative hearing organised by the House Ad-Hoc Committee on the matter on Monday, Abbas expressed grave concern over years of non-compliance with Section 14(1)(h) of the Act, which mandates that five per cent of the pump price of petrol and diesel be allocated to FERMA and State Road Maintenance Agencies in the ratio of 40:60.

He revealed that a motion adopted by the House on March 19, 2024, triggered the current investigation, following revelations of long-standing violations of the law.

He said, “We owe Nigerians the obligation under 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 five per cent 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 speaker said the investigation is not aimed at amending the law or raising fuel prices, but at compelling full implementation of an existing statute.

“Over the years, the non-compliance has crippled road maintenance efforts across the country and denied citizens the benefits of safer, motorable roads,” he added.

He charged the committee, chaired by Hon. Francis Waive, to demand all relevant records from agencies involved, assess total accruals from the charge since the law’s inception, and recommend ways to prevent future breaches.

At the hearing, the Minister of State for Works, Mohammed Bello Goroyo, lamented the chronic underfunding of road maintenance in the country.

He disclosed that Nigeria requires at least ₦880bn annually to maintain its federal road network but receives far less through budgetary allocations—₦76.3bn in 2023, ₦103.3bn in 2024, and ₦168.9bn earmarked for 2025.

Goroyo described the five per cent user charge as a vital funding mechanism envisioned to ensure sustainable road maintenance.

He, however, noted that the fund has remained inaccessible since 2007 due to the failure by agencies like the defunct Petroleum Products Pricing Regulatory Agency (PPPRA) and its successor, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to implement the policy.

“Our roads are the lifelines of commerce and social integration, and their maintenance is not merely a policy directive but a national imperative. 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 ₦880bn annually for optimal road conditions, budgetary allocations have consistently fallen short—N76.3bn in 2023, N103.3bn in 2024, and N168.9bn budgeted for 2025.

“Though these figures show gradual increases, they remain far below the necessary threshold for sustainable road maintenance. This persistent funding gap 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.

“Thus, the diligent implementation and timely remittance of the five per cent user charge are paramount. This dedicated funding stream 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”.

Also speaking, the FERMA Managing Director, Chukwuemeka Agbasi, told the committee that despite presidential approval in 2011 under former President Goodluck Jonathan for a template to implement the user charge, nothing has been done since.

He confirmed that the agency has never received any funds under the five per cent charge provision.

The Committee Chairman, Hon. Francis Waive, explained that the hearing was aimed at enforcing compliance, not altering the law.

He said the essence of the investigation was to correct the anomalies existing through disobedience to existing laws, adding that the House will ensure that every law passed by the parliament will be obeyed.

Reps Probe Unpaid 5% Fuel Levy For Road Repairs is first published on The Whistler Newspaper