Reps Probe Non-Implementation of 5% User Charge on Petrol, Diesel for Road Maintenance
The House of Representatives on Monday commenced a public investigative hearing into the non-implementation and remittance of the 5% user’s charge on the pump price of petrol and diesel, as stipulated in the Federal Roads Maintenance Agency (FERMA) Amendment Act, 2007.
The law mandates a 5% user’s charge on the sale of petrol and diesel, with 40% of the proceeds designated for FERMA and the remaining 60% allocated to State Road Maintenance Agencies. Despite the clear legal provision, the levy has yet to be implemented, raising concerns over the persistent underfunding of road infrastructure maintenance in Nigeria.
The Ad-hoc Committee, chaired by Hon. Francis Waive, is tasked with establishing the status of the user’s charge and ensuring compliance with statutory obligations. In his opening remarks, Hon. Waive said the implementation of the charge would be a landmark achievement for the 10th Assembly, as it promises a sustainable funding mechanism for Nigeria’s road network.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) was among the agencies invited to the hearing. Representing the Chief Executive Officer, Engr. Farouk Ahmed, a senior official admitted that the user’s charge had not been enforced due to the lack of a collection framework. He assured lawmakers that the NMDPRA is willing to comply once proper modalities are established.
Read Also:
The committee directed NMDPRA to provide a comprehensive estimate of the amount that should have accrued to FERMA from the 5% charge since the law came into force in 2007.
Also speaking at the hearing, the Minister of State for Works, Bello Muhammad Goronyo, Esq., reiterated the commitment of the Federal Ministry of Works to the Renewed Hope Agenda of President Bola Ahmed Tinubu. He emphasized that the ministry is dedicated to delivering world-class infrastructure to support economic development and improve citizens’ livelihoods. He noted that the 5% charge is a critical funding tool for road rehabilitation and construction.
FERMA’s Managing Director and Chief Executive Officer, Dr. Emeka Agbasi, FNSE, lamented the agency’s chronic underfunding, disclosing that annual budgetary allocations only meet 20% of FERMA’s financial needs. He described the user’s charge as a globally accepted model for road infrastructure funding and urged the committee to enforce the law.
Dr. Agbasi recommended the creation of a FERMA Road Fund Account and the inclusion of mandatory provisions for the collection, administration, and auditing of the charge. He described the 5% levy as a vital but underutilized instrument for tackling Nigeria’s road infrastructure challenges.
The public hearing continues as the House intensifies efforts to ensure accountability and improved road maintenance across the country.
Signed:
Maryam M. Sanusi (Mrs.), fnipr
Director, Information/PR
2nd June, 2025
