FG Estimates N880bn Annually for Road Maintenance
The Federal Government must spend about N880bn annually for the maintenance of the federal road network nationwide, the Minister of State for Works, Mohammed Goroyo, declared on Monday.
This came as the Managing Director of the Federal Road Maintenance Agency (FERMA), Chukwuemeka Abbasi, disclosed that the template for deducting the road user charge from the prices of petrol and diesel was never implemented by the defunct Petroleum Product Pricing Regulatory Authority, now the Nigeria Midstream and Downstream Petroleum Regulatory Authority.
The two government officials spoke in Abuja at an investigative hearing of the House of Representatives Ad-Hoc Committee. The committee is investigating the implementation and remittances of the five per cent user charge for road maintenance under the Federal Road Maintenance Agency.
Speaking at the event, Goroyo said, “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 was 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 ensure smooth, safe, and efficient roadways nationwide.
“Thus, 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 added that inadequate funding has been the major bane of the nation’s road infrastructure, stressing that even though the user charge was supposed to address the gap, the agency and the Ministry have not been able to access it.
On his part, the FERMA boss said, “Under the visionary leadership of President Bola Tinubu, 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 five per cent 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.”
Declaring the event open, Speaker of the House of Representatives, Tajudeen Abbas, recalled that the House had on 19th March considered a motion at plenary revealing the non-implementation of remittance of the five per cent user charge on petroleum products meant for road maintenance under the FERMA Amendment Act, 2007.
He said, “We owe Nigerians the obligation by sections 88 and 89 of the Constitution of the Federal Republic of Nigeria 1999 (as amended) 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 and the amount of money unremitted and those responsible for the non-implementation.”
He stressed that the investigative hearing should also be able to make strong recommendations on how to forestall further abuse of the law and streamline the remittance processes for ease of access to the funds by the relevant government agencies.
The Chairman of the Committee, who doubles as the Chairman, House Committee on Rules and Business, Francis Waive, said the user charge is not an attempt to increase the prices of petroleum products or to amend the law since it has been part of the law since 2007.
He added that the purpose of the investigation is to address the anomalies existing through disobedience to existing laws, adding that the House will ensure that every law passed by the parliament is complied with both by individuals and agencies of government.
