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From Ndubuisi Orji, Abuja
The House of Representatives has initiated a probe into the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) over the implementation and remittance of the 5 per cent user charge on petrol and diesel.
To facilitate the investigation, the House has resolved to establish an ad-hoc committee tasked with examining the enforcement and compliance with the user charge, as mandated by the Federal Road Maintenance Agency (FERMA) Amendment Act, 2007.
The panel, when constituted, is expected to undertake a comprehensive investigation of the status of the 5 per cent user charge, the outstanding amount owed to FERMA from the charge, as well as identify the officials responsible for the implementation.
The ad-hoc committee is to report back to the House within four weeks for further legislative action.
This was sequel to the adoption of a motion by Frederick Agbedi, calling for an investigation into the implementation and remittance of the 5 per cent user charge for road maintenance, as contained in the FERMA Act.
Agbedi, in the motion, explained that Section 14(1)(h) of the FERMA (Amendment) Act, 2007 provides for a 5 per cent user charge on the pump price of petrol and diesel for the maintenance of federal and state roads in the country.
According to him, the Act provides that 40 per cent of the charge shall be allocated to FERMA and 60 per cent to state road maintenance agencies.
He contended that “since the enactment of this provision, the defunct Petroleum Products Pricing Regulatory Agency (PPPRA) reportedly failed to remit funds to FERMA, despite multiple directives from the legislature.
“In 2016, the Senate Committee on Works directed PPPRA to remit N634 billion to FERMA, representing unremitted funds between 2007 and 2015, but no evidence suggests that these funds have been fully accounted for or disbursed.
“In 2019, the Senate directed its Committees on Petroleum Downstream and National Planning to investigate the Petroleum Products Pricing Regulatory Agency’s (PPPRA’s) failure to remit the funds, yet no significant progress has been reported on the implementation of this charge or the recovery of the arrears owed to FERMA.”
Agbedi expressed concern that the alleged non-remittance of these funds has severely limited FERMA’s capacity to maintain and rehabilitate federal roads. He added that this development has led “to the deterioration of road infrastructure, increased accidents, higher vehicle maintenance costs, and economic losses.”
Furthermore, the lawmaker noted that “the defunct PPPRA justified its non-compliance by arguing that implementing the 5 per cent user charge would increase fuel prices, despite the clear legal requirement for such remittances.
“As of January 2025, there is no publicly available evidence from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which took over the functions of the PPPRA, indicating that the 5 per cent user charge has been enforced or that the required funds have been remitted, thus undermining road maintenance efforts and neglecting a crucial funding mechanism for infrastructure development.”
