ABUJA, Nigeria (VOICE OF NAIJA)- The Federal Government requires approximately N880 billion annually to maintain the country’s road network, the Minister of State for Works, Mohammed Goroyo, said on Monday.
Goroyo made this known during an investigative hearing held in Abuja by the House of Representatives Ad-Hoc Committee investigating the implementation and remittances of the five per cent user charge for road maintenance under the Federal Road Maintenance Agency (FERMA).
Also speaking at the session, the Managing Director of FERMA, Chukwuemeka Abbasi, revealed that the former Petroleum Product Pricing Regulatory Authority (PPPRA) now the Nigeria Midstream and Downstream Petroleum Regulatory Authority failed to implement the pricing template for deducting the road user charge from petrol and diesel prices.
Addressing lawmakers, Goroyo said, “FERMA requires an estimated N880bn annually for optimal road conditions. Budgetary allocations have consistently fallen short N76.3bn in 2023, N103.3bn in 2024, while N168.9bn was 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 ensure 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.”
He noted that chronic underfunding remains a major challenge to Nigeria’s road infrastructure, pointing out that although the user charge was intended to close the funding gap, both the Ministry and FERMA have been unable to access the funds.
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Speaking during the session, the Managing Director of the Federal Road Maintenance Agency, Chukwuemeka Abbasi, stated “Under the visionary leadership of President Bola Tinubu, the Federal Ministry of Works remains steadfast in the Renewed Hope Agenda, an agenda dedicated to delivering world-class infrastructure that fosters economic growth, strengthens connectivity, and enhances the daily lives of our citizens.
Our roads are the lifelines of commerce and social integration, and their maintenance is not merely a policy directive but a national imperative.
The five per cent 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.”
Declaring the hearing open, Speaker of the House of Representatives, Tajudeen Abbas, recalled that on March 19, the House adopted a motion highlighting the failure to remit the five per cent user charge on petroleum products as required under the FERMA Amendment Act of 2007.
He said, “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 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.”
Abbas added that the hearing should lead to solid recommendations to prevent future violations and simplify the remittance process so that relevant agencies can easily access the funds.
Also speaking, the Chairman of the Ad-Hoc Committee and Chairman of the House Committee on Rules and Business, Francis Waive, clarified that the user charge was not intended to raise petroleum prices or amend existing laws.
He noted that the investigation aims to correct long-standing violations of the law, stating that the House is committed to ensuring compliance with all laws passed by the National Assembly, whether by individuals or government agencies.