The Speaker of the House of Representatives, Abbas Tajudeen, has ordered a full-scale investigation into the failure of government agencies to implement and remit the statutory five per cent road maintenance user charge mandated by the Federal Roads Maintenance Agency (FERMA) Amendment Act of 2007.
Speaking at an investigative hearing convened by the House Ad-Hoc Committee on the matter on Monday, the Speaker expressed deep concern over the longstanding non-compliance with Section 14(1)(h) of the Act.
This section stipulates that five per cent of the pump price of petrol and diesel be allocated to FERMA and State Road Maintenance Agencies, to be distributed in a 40:60 ratio.
Abbas revealed that the probe was prompted by a motion adopted by the House on 19 March 2024, following disclosures of years of deliberate disregard for the law.
“We have a constitutional duty under Sections 88 and 89 of the 1999 Constitution (as amended) to thoroughly investigate the status of the five per cent user charge,” Abbas said. “This includes determining how long the law has been violated, identifying the amount unremitted, and holding those responsible to account.”
He clarified that the objective of the investigation is not to amend existing legislation or trigger a rise in fuel prices, but to ensure full enforcement of an already established legal framework.
“For years, this non-compliance has crippled road maintenance across the country and robbed Nigerians of the benefits of safer, more accessible road networks,” the Speaker added.
He tasked the committee, chaired by Hon. Francis Waive, with retrieving all relevant records from the concerned agencies, calculating the total revenue that should have accrued from the user charge since the law’s enactment, and making recommendations to forestall future violations.
At the hearing, the Minister of State for Works, Mohammed Bello Goroyo, raised the alarm over the chronic underfunding of federal road maintenance. He stated that Nigeria requires a minimum of ₦880 billion annually to maintain its federal road infrastructure, yet continues to receive far less in actual budget allocations: ₦76.3 billion in 2023, ₦103.3 billion in 2024, and ₦168.9 billion earmarked for 2025.
Goroyo described the five per cent user charge as a critical funding mechanism that was originally intended to provide consistent and sustainable financing for the upkeep of roads.
However, he lamented that the funds have remained out of reach since 2007 due to inaction by key agencies such as the now-defunct Petroleum Products Pricing Regulatory Agency (PPPRA) and its successor, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
“Our roads are more than just infrastructure—they are the backbone of commerce and social unity,” Goroyo said. “Maintaining them is not just a policy preference but a national necessity.”
He continued: “The user charge was included in the FERMA Act as a sustainable way to fund road rehabilitation. But despite this legal provision, FERMA has continued to face acute funding shortages.”
He reiterated that while allocations have seen incremental increases over the past three years, they remain well below what is required for proper road maintenance. “This gap has left FERMA in a constant state of reactive, rather than preventive, maintenance,” he explained.
“This shortfall results in deteriorating road conditions, soaring repair costs, and prolonged inconvenience for commuters and businesses. Only a proactive approach, supported by adequate funding, can guarantee the kind of road infrastructure Nigerians deserve.”
Goroyo urged that the timely and proper implementation of the five per cent user charge would help close the funding gap without depending entirely on the national budget cycle.
Also appearing before the committee was the Managing Director of FERMA, Chukwuemeka Agbasi, who revealed that despite receiving presidential approval in 2011 under former President Goodluck Jonathan for a template to implement the user charge, no further action has been taken since then.
He confirmed that FERMA has never received any funds under the provision.
Committee Chairman, Hon. Francis Waive, stressed that the hearing was focused solely on enforcing compliance with the law, not on amending it. He said the exercise was intended to correct the systemic disregard for legislation passed by the National Assembly.
“This hearing is about accountability and ensuring that laws duly passed by parliament are fully respected and implemented,” Waive said. “We will not allow this kind of prolonged neglect to continue unchallenged.”
