The Minister of State for Works, Bar. Bello Muhammad Goronyo and the Managing Director and Chief Executive Officer of the Federal Road Maintenance Agency (FERMA), Dr. Emeka Agbasi have lamented that poor funding has continued to hamper the agency's capability to effectively repair the country's vast road networks, saying over N800 billions is required to accomplish its mandate of road maintenance.
Both spoke during the Public Hearing of the Ad-hoc Committee on the need to investigate the Implementation and Remittance of the 5% User Charge on Petroleum Products and Diesel under the FERMA Act, 2007, held on Monday at the National Assembly Complex, Abuja.
The Minister said the gathering underscored shared commitment to accountability, transparency, and the advancement of Nigeria's infrastructure.
"Under the visionary leadership of His Excellency/President Bola Ahmed Tinubu, GCFR, the Federal Ministry of Works remains steadfast in the Renewed Hope Agenda-an agenda dedicated to delivering world-class infrastructure that fosters economic growth, strengthens connectivity, and enhances the daily lives of our citizens.
"Our roads are the lifelines of commerce and social integration, and their maintenance is not merely a policy directive but a national imperative. The 5% user charge, as enshrined in the FERMA Act, was designed to serve as a sustainable funding mechanism for road maintenance and rehabilitation.
"However, for years, FERMA has grappled with severe funding inadequacies, hampering its ability to maintain our vast road network effectively. The agency requires an estimated N880 billion annually for optimal road conditions," the minister noted.
Speaking on the shortfall, the minister said; "fallen short #76.3 billion in 2023, N103.3 billion in 2024, and #168.9 billion budgeted for 2025. Though these figures show gradual increases, they remain far below the necessary threshold for sustainable road maintenance.
"This persistent funding gap has forced FERMA into a reactive mode of maintenance rather than a preventive approach. The consequences of this are glaring-deteriorating road conditions, increased repair costs, and prolonged disruptions for commuters and businesses alike.
"A proactive strategy, backed by adequate funding, is essential to ensuring smooth, safe, and efficient roadways nationwide. Thus, the diligent implementation and timely remittance of the 5% 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."
The Federal Ministry of Works and FERMA stand ready to cooperate fully, providing all relevant information and documentation to ensure a comprehensive review.
"This investigation by the Ad-Hoc Committee is more than an oversight function-it is a collaborative effort to identify challenges and establish robust mechanisms for efficient resource utilization.
"Let me reaffirm the unwavering dedication of the Federal Ministry of Works to ensuring that every naira collected as user charge serves its intended purpose-building and maintaining roads that empower the Nigerian people and drive economic prosperity.
"The insights gained from this investigation will not only enhance public trust but also reinforce the integrity of the Renewed Hope Agenda, translating policy into tangible improvements in our national infrastructure."
On his part the FERMA MD/CEO explained that the federal road network has challenges ranging from pavement failure, deteriorating bridges, missing or damaged road furniture and emerging environmental impacts caused by climate change.
According to him, there is also maintenance backlog caused by insufficient funding over the years outside associated impacts of the poor road infrastructure on the nation.
"The 5% user charge on petroleum products, as outlined in the FERMA (Amendment) Act of 2007, remains a critical yet underutilized policy tool for addressing Nigeria's road infrastructure crisis. Its full and transparent Implementation offers a sustainable pathway to reversing the alarming state of Nigerian roads, boosting economic performance, and improving the quality of life for millions of citizens.
"In an era where public resources are stretched thin, tapping into legally mandated alternative funding sources is not just necessary -it is imperative."
Dr. Agbasi urged the committee to adopt a multi-pronged approach in tackling the funding challenge.
"To fully realize the 5% user charge and its benefits, the Committee is invited to note and consider a multi-pronged approach including: Amendment of FERMA Act (2007): To include clear and mandatory provisions for the collection, administration, and auditing of the 5% user charge," he noted.
The Chairman, Ad-hoc Committee, Hon. Francis Waive said the committee is to examine the statute of implementation compliance by relevant stakeholders and incorporate the new tax structure of the statutory user charge provided in Article 14 from 1A of the FERMA Act of 2007.
He thanked Honourable Speaker and the House of Representatives for graciously accepting to declare this hearing open and for the leadership and support.
"Distinguished stakeholders, the task before this committee is both urgent and vital.This user charge was designed as a statutory revenue stream to ensure continued maintenance and rehabilitation of federal roads across the country.
"However, there have been persistent concerns and questions surrounding the actual implementation of this provision.
The Establishment Act of the Agency was amended in 2007 to provide for additional sources of funds among which is the 5% user's charge on the pump price of petrol and diesel.