Reps probe 17-year delay in implementing 5% fuel levy for road repairs

By Kunle Sanni

The House of Representatives has launched a public hearing to investigate the non-implementation and remittance of the 5% user charge on petrol and diesel pump prices, as mandated by the Federal Roads Maintenance Agency (FERMA) Act of 2007.

At the session, held by an ad hoc committee of the House on Monday, lawmakers examined why the charge—intended to fund road maintenance nationwide—has not been enforced 17 years after its legal establishment. Under the FERMA Act, 40% of the user charge is allocated to FERMA, while the remaining 60% is earmarked for State Roads Maintenance Agencies.

Appearing before the committee, a representative of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Chief Executive, Engr. Farouk Ahmed, acknowledged that the user charge has not been implemented. He attributed the delay to the absence of formal mechanisms for collecting and disbursing the funds, but stated that the agency is ready to comply once the necessary structures are established.

Committee Chairman, Hon. Francis Waive, described the hearing as a critical step toward fulfilling the 10th Assembly’s commitment to transparency and infrastructure development. He directed NMDPRA to submit an estimate of the revenue that should have accrued from the 5% charge since the FERMA Act came into force in 2007.

“This charge has long been neglected,” Waive said. “With full implementation, we can unlock sustainable funding for road maintenance and fulfill a key legislative mandate for the benefit of all Nigerians.”

The Minister of State for Works, Bello Muhammad Goronyo, also spoke at the hearing, reaffirming the Federal Government’s commitment to infrastructure development under President Bola Ahmed Tinubu’s Renewed Hope Agenda. He said the Ministry would ensure that the user charge serves its original purpose of improving road infrastructure and supporting economic growth.

FERMA Managing Director, Dr. Emeka Agbasi, emphasized that the agency remains severely underfunded, relying almost entirely on annual federal budget allocations—which currently meet only 20% of its operational needs. He urged the lawmakers to mandate full enforcement of the 5% user charge and proposed the creation of a dedicated FERMA Road Fund Account to ensure transparent collection, management, and auditing of the funds.

“The 5% user charge on petrol and diesel, as outlined in the FERMA Amendment Act, 2007, remains a critical yet underutilized policy tool,” Agbasi said. “It offers a globally recognized mechanism to sustainably finance road maintenance.”