The Federal Government needs an estimated N880 billion annually to maintain the country’s federal road network, Minister of State for Works, Mohammed Goroyo, disclosed on Monday.
Goroyo made the disclosure during an investigative hearing by the House of Representatives Ad-Hoc Committee probing the implementation and remittance of the five per cent user charge designated for road maintenance under the Federal Roads Maintenance Agency (FERMA) Act.
According to the Minister, persistent underfunding has hindered the agency’s ability to maintain federal roads effectively, noting that allocations over the years have fallen short of the estimated requirement. “FERMA requires an estimated N880bn annually for optimal road conditions. Budgetary allocations have consistently fallen short—N76.3bn in 2023, N103.3bn in 2024, while N168.9bn has been earmarked for 2025,” he said.
He described the funding shortfall as a major setback for road infrastructure in Nigeria, adding that it has relegated FERMA to reactive rather than preventive maintenance, resulting in deteriorating roads, escalating repair costs, and disruptions to economic activities.
“The diligent implementation and timely remittance of the five per cent user charge are paramount, This dedicated funding stream offers a viable solution to bridge the financial gap, providing consistent resources to address Nigeria’s infrastructure needs without over-reliance on annual budget appropriations.” He stated.
Also speaking at the hearing, Managing Director of FERMA, Chukwuemeka Agbasi, revealed that the template for deducting the user charge from the pump prices of petrol and diesel was never enforced by the now-defunct Petroleum Product Pricing Regulatory Agency (PPPRA), which has been replaced by the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Agbasi noted that the failure to implement the charge has significantly impeded the agency’s capacity to deliver on its mandate. “Our roads are the lifelines of commerce and social integration. The five per cent user charge, as enshrined in the FERMA Act, was designed to be a sustainable funding mechanism. However, FERMA has grappled with severe funding inadequacies for years.”
In his remarks, Speaker of the House of Representatives, Tajudeen Abbas, emphasised the constitutional responsibility of the National Assembly to investigate the non-remittance of the five per cent user charge, citing Sections 88 and 89 of the 1999 Constitution.
“We owe Nigerians the obligation to conduct a comprehensive investigation into the status of the five per cent user charge to determine the extent of the violation of the law, the amount of money unremitted, and those responsible for the non-implementation,” Abbas said.
He added that the outcome of the probe must include strong recommendations to prevent future abuse and ensure smooth access to the funds by relevant agencies.
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 levy and does not aim to increase fuel prices. “It has been part of the law since 2007. This investigation is meant to address anomalies caused by disobedience to existing legislation,” he said, adding that the House would ensure full compliance with all laws passed by the legislature.
The hearing highlighted the urgent need for a sustainable and transparent funding mechanism for Nigeria’s road infrastructure to support economic development and improve public safety.
