The Federal Government must spend an estimated ₦880 billion annually to maintain the country’s expansive federal road network, the Minister of State for Works, Mohammed Goroyo, revealed on Monday.
Goroyo made this known during an investigative hearing by the House of Representatives Ad-Hoc Committee probing the implementation and remittance of the statutory five per cent road user charge designated for road maintenance through the Federal Roads Maintenance Agency (FERMA).
He noted that despite the huge financial requirement, actual budgetary allocations have consistently fallen short, stating that FERMA received ₦76.3bn in 2023, ₦103.3bn in 2024, and ₦168.9bn has been earmarked for 2025 — figures that remain significantly below the needed benchmark.
“This persistent funding gap has forced FERMA into a reactive rather than preventive mode of maintenance,” Goroyo said. “The consequences are clear: deteriorating road conditions, rising repair costs, and increased disruptions for commuters and businesses.”
He emphasized the need for a proactive strategy backed by a reliable funding mechanism, urging the full implementation and remittance of the five per cent user charge as enshrined in the FERMA Act. According to him, the dedicated fund offers a sustainable solution that would reduce dependence on annual budget allocations.
Also speaking at the event, Managing Director of FERMA, Chukwuemeka Agbasi, disclosed that the deduction template for the road user charge from fuel prices was never implemented by the defunct Petroleum Product Pricing Regulatory Authority (PPPRA), now succeeded by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
He described the long-standing funding shortfall as a major impediment to FERMA’s mandate, despite the road user charge being a legal provision since 2007.
“Our roads are the arteries of commerce and national integration,” Agbasi stated. “Their maintenance is not just a policy; it is a national imperative.”
In his remarks, Speaker of the House of Representatives, Tajudeen Abbas, reiterated the House’s constitutional obligation to investigate the non-remittance of the road user charge, referencing a motion adopted on March 19th. He noted that the law under the FERMA Amendment Act, 2007, mandates the deduction of five per cent from petroleum product pump prices for road maintenance — a provision that has been ignored for over a decade.
“We owe Nigerians a duty to determine the extent of this violation and identify the persons or institutions responsible,” the Speaker declared.
Chairman of the Ad-Hoc Committee, and Chairman of the House Committee on Rules and Business, Francis Waive, clarified that the user charge is not a new tax or an attempt to amend the law, but a previously established provision that has simply been neglected.
“The purpose of this investigation is to correct systemic disobedience to existing laws,” he said. “The House will ensure full compliance with legislative provisions going forward.”
The hearing marks a renewed push by lawmakers to enforce accountability in the management of Nigeria’s infrastructure funding and ensure that legal financial channels such as the FERMA user charge are no longer overlooked.
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