Reps to Probe Non-remittance of 5% User Charge for Road Maintenance

The House of Representatives has moved to set set up an ad-hoc committee to conduct a comprehensive investigation into the status of the 5% user charge, including the outstanding amount owed to the Federal Road Maintenance Agency, (FERMA) and the officials responsible for its implementation.

This was sequel to the adoption of a motion on the “Need to Investigate the Implementation and Remittance of the 5% User Charge for Roads Maintenance under the Federal Emergency Road Maintenance Agency (Amendment) Act, 2007“, sponsored by Mr. Frederick Agbedi.

Leading the debate on the motion, Mr. Agbedi said that the House notes that Section 14(1)(h) of the Federal Roads Maintenance Agency (FERMA) (Amendment) Act, 2007 mandates a 5% user charge on the pump price of petrol and diesel for the maintenance of Federal and State Roads, with 40% allocated to FERMA and 60% to State Roads Maintenance Agencies.

He said that since the enactment of the provision, the defunct Petroleum Products Pricing Regulatory Agency (PPPRA) reportedly failed to remit funds to FERMA, despite multiple directives from the legislature.

“Aware that in 2016, the Senate Committee on Works directed PPPRA to remit N634 billion to FERMA, representing unremitted funds between 2007 and 2015, but no evidence to suggest that these funds have
been fully accounted for or disbursed;

“Also aware that in 2019, the Senate directed its Committees on Petroleum Downstream and National Planning to investigate the Petroleum Product Pricing Regulatory Agency’s (PPPRA’s) failure to remit the funds, yet no significant progress has been reported on the implementation of this charge or the recovery of the arrears owed to FERMA” the motion read.

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He also said that the House was concerned that the non-remittance of these funds has severely limited FERMA’s capacity to maintain and rehabilitate federal roads, leading to the deterioration of road infrastructure, increased accidents, higher vehicle maintenance costs and economic losses.

“Also concerned that the defunct PPPRA justified its non-compliance by arguing that implementing the 5% user charge would increase fuel prices despite the clear legal requirement for such remittances;

“Disturbed that as of January 2025, there is no publicly available evidence from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which took over the functions of the PPPRA, indicating that the 5% user charge has been enforced or that the required funds have been remitted, thus undermining road maintenance efforts and neglecting a crucial funding mechanism for
infrastructure development” he said.

The House resolved to mandate the adhoc committee when constituted to investigate the remittance and report back to the House within four (4) weeks for further legislative action.

While ruling on the motion, the speaker of the House of Representatives, Mr. Tajudeen Abbas said that the adhoc committee would be constituted in due course.

Emmanuel Ukoh