Abuja, Nigeria — The price of Premium Motor Spirit (PMS) and Automotive Gas Oil (diesel) may soon increase as the Federal Ministry of Works and the House of Representatives push for the enforcement of a long-standing 5% road user charge, to be added to fuel and diesel prices.
This development was revealed during an investigative hearing by the House of Representatives Ad-Hoc Committee in Abuja on Monday, aimed at uncovering why the user charge stipulated in the Federal Roads Maintenance Agency (FERMA) Act of 2007 has not been implemented.
Minister of State for Works, Mohammed Goroyo, emphasized the urgent need to activate the road user charge to bridge the widening funding gap for federal road maintenance. According to him, FERMA requires approximately ₦880 billion annually to maintain the country’s road network, but government budget allocations continue to fall far below this benchmark — with ₦76.3 billion allocated in 2023, ₦103.3 billion in 2024, and ₦168.9 billion earmarked for 2025.
“The consequences of this underfunding are glaring—deteriorating road conditions, higher vehicle maintenance costs, and longer travel times for commuters and businesses. The implementation and remittance of the 5% user charge are critical to reversing these trends,” Goroyo stated.
Adding to the concerns, FERMA Managing Director, Chukwuemeka Agbasi, noted that despite being clearly outlined in the FERMA Act, the deduction and remittance of the charge has not been executed by the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
“The user charge was designed as a sustainable financing tool, yet FERMA has continued to struggle with severe funding shortages, limiting our ability to deliver on our mandate,” Agbasi said.
Speaker of the House, Tajudeen Abbas, pointed out that the lower chamber had, on March 19, raised a motion highlighting the failure to implement the charge, which is legally required under the FERMA Amendment Act, 2007.
Chairman of the investigative committee, Francis Waive, who also heads the House Committee on Rules and Business, clarified that the road user charge is not a new tax or amendment, but an existing law that has been ignored. “This probe is about correcting disobedience to existing legislation. The National Assembly will ensure full compliance with every law passed,” Waive said.
The move comes at a time when Nigerians have seen a modest reduction in PMS prices, with retail outlets operated by the Nigerian National Petroleum Company (NNPC) Limited, Dangote Refinery, and others selling petrol between ₦875 and ₦895 per litre in major cities like Lagos and Abuja.
Should the 5% charge be implemented, however, fuel prices could again edge upward — raising fresh concerns among consumers already grappling with inflation and a high cost of living.
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