From Ndubuisi Orji, Abuja
The House of Representatives has said it is probing the remittances of 5% user charge on every litre of petroleum product as enshrined in the Federal Road Maintenance Agency (FERMA) Act to unravel the factors responsible for alleged violation of the act.
The speaker, Tajudeen Abbas, stated this at an investigative hearing organized by the House Ad-hoc Committee saddled with the investigation.
Abbas recalled that the parliament had on March 19 adopted a motion for a probe of the alleged violation of the FERMA Act, following concerns that relevant agencies of government have failed enforce the statutory charge and remittance of the fund to the agency.
According to him, ” It is important to recall that Section 14(1)(h) of the FERMA Amendment Act 2007 stipulates that 5% 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.
” However, over the years, this 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.”
The Minister of State for Works, Bello Goronyo, in a goodwill mesdage, at an investigative hearing, said FERMA needs
₦880 billion annually to fix roads in the country.
Goronyo explained that that the 5% user charge, established under the Federal Road Maintenance Agency ( FERMA) Act of 2007, was intended to provide a reliable and steady stream of funding for road maintenance by the agency.
“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.
“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, ” he stated.