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As the Federal Ministry of Works and the House of Representatives push for a 5 percent road user charge to be included in fuel and diesel prices, the cost of premium motor spirit and automotive gas oil may increase.
This information was disclosed during an investigative hearing conducted by the House of Representatives Ad-Hoc Committee on Monday in Abuja, as reported.
Mohammed Goroyo, the Minister of State for Works, has indicated that it is urgently required for the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to implement the collection of a 5 percent road user charge in order to alleviate the funding deficit for federal road maintenance across the country.
He stressed that Nigeria needs ₦800 billion annually to maintain roads, but the budget allocated for the Federal Roads Maintenance Agency has been insufficient.
“An estimated N880bn is required annually by FERMA for optimal road conditions. Allocations from the budget have continually been inadequate—₦76.3bn in 2023 and ₦103.3bn in 2024, with a budgeted amount of ₦168.9bn for 2025.
“The ramifications of this are evident: worsening road conditions, heightened repair expenses, and extended interruptions for both commuters and businesses.
“Therefore, it is crucial to implement the five percent user charge diligently and to remit it on time,” he stated.
Chukwuemeka Abbasi, the Managing Director of NMDPRA (the Federal Road Maintenance Agency), disclosed that NMDPRA did not implement the framework for deducting road user charges from the prices of petrol and diesel.
He explained that “the five per cent user charge outlined in the FERMA Act was designed to serve as a sustainable funding source for road maintenance and rehabilitation.
FERMA has struggled with considerable funding deficits over the years, which have limited its ability to manage our extensive road network effectively. ”
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Previously, Tajudeen Abbas, the Speaker of the House of Representatives, noted that on March 19th, the House had discussed a motion during a plenary session that drew attention to the failure to implement the remittance of a five percent user charge on petroleum products intended for road maintenance as outlined in the FERMA Amendment Act of 2007.
Francis Waive, who chairs both the committee and the House Committee on Rules and Business, clarified that the five percent road user charge is not aimed at increasing petroleum product prices or amending the law, as it has been included in legislation since 2007.
He underscored that the purpose of the inquiry was to correct the irregularities resulting from failure to comply with current legislation. He added that the House will make certain that all laws passed by parliament are followed by both individuals and government entities.
Nigerians have recently noticed a decline in petrol prices, and this development comes in that context.
Recently, retail outlets of the Nigerian National Petroleum Company Limited, together with Dangote Refinery and its partners, have lowered their retail prices of PMS to ₦875 and ₦895 per litre in Lagos and Abuja.
