From Isaac Anumihe, Abuja
National Assembly has initiated a probe into a five per cent user’s charge on the pump price of petrol and diesel in the Federal Road Maintenance Agency (FERMA) Act.
In a statement, the FERMA Act, 2007 provides a 5 per cent user’s charge on the pump price of petrol, diesel of which 40 per cent will accrue to FERMA and 60 per cent to be utilised by the State’s Roads Maintenance Agencies.
Speaking at a public hearing, organised by House of Representatives, in Abuja, the representative of the Chief Executive Officer of Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMPDRA), Engineer Farouk Ahmed affirmed that the non-implementation of the 5 per cent user’s charge was due to the unavailability of the modalities for the collection of the allocated fund. He stated that the commission was ready to implement the enacted law once the modalities are put in place.
The chairman of the ad-hoc committee (of the House of Representatives), Honourable Francis Waive, stated that the implementation of the 5 per cent user’s charge would go down in history as one of the achievements of the 10th House of Representatives and the committee with the help of stakeholders.
The stakeholders , he said, would establish the true status of the user’s charge and ensure accountability, compliance with the statutory obligations and ultimately that Nigeria and Nigerian roads would benefit from the funding mechanism clearly provided for in the law.
Consequently, the chairman directed NMPDRA to provide an estimate of the 5 per cent user’s charge since the enactment in 2007 has established that the law has been faulted.
in his remarks, Minister of State for Works, Bello Muhammad Goronyo, said that under the visionary leadership of President Bola Ahmed Tinubu, the Federal Ministry of Works remains steadfast in the Renewed Hope Agenda, which is dedicated to delivering a world-class infrastructure that fosters economic growth, strengthens connectivity and enhances the daily lives of citizens.. He said the Ministry of Works would ensure the 5 per cent user’s charge as enshrined in the FERMA Act, serves its intended purpose of building and maintaining roads that empower the Nigerian people and drive economic prosperity.
Managing Director/Chief Executive Officer (CEO) of FERMA, Dr. Emeka Agbasi, in his submission, raised the justification for the remittance of the 5 per cent user’s charge to the agency, stating that the agency has been underfunded with only the annual budgetary allocations which provides 20 per cent of FERMA’S financial requirement. He added that user’s charge is a common and effective mechanism globally for funding of road infrastructure maintenance. To fully realise the 5 per cent user’s charge, Agbasi urged the committee to include clear and mandatory provisions for the collection, administration, and auditing of the 5 per cent user’s charge; create a FERMA Road Fund Account, and full enforcement of the existing FERMA Amendment Act.
According to him, the’ 5 per cent user’s charge on petrol and diesel as outlined in the FERMA (Amendment) Act, 2007, remains a critical, yet underutilised policy tool for addressing Nigeria’s road infrastructure crises.