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

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

The House of Representatives has resolved to establish an ad-hoc committee to investigate the implementation and remittance of the 5% user charge on petrol and diesel, mandated by the Federal Roads Maintenance Agency (FERMA) (Amendment) Act, 2007. This charge is intended to fund the maintenance of federal and state roads, with 40% allocated to FERMA and 60% to State Roads Maintenance Agencies.

The motion, sponsored by Rep. Frederick Agbedi, highlighted that since the law’s enactment, the now-defunct Petroleum Products Pricing Regulatory Agency (PPPRA) failed to remit the funds to FERMA despite multiple legislative directives. In 2016, the Senate Committee on Works ordered PPPRA to remit ₦634 billion representing unpaid funds from 2007 to 2015, but no evidence shows these funds were fully accounted for or disbursed. Further investigations by Senate committees in 2019 yielded no significant progress.

The non-remittance has severely impaired FERMA’s ability to maintain roads, leading to infrastructure deterioration, increased accidents, higher vehicle maintenance costs, and economic losses. PPPRA had justified its failure by claiming the charge would raise fuel prices, despite legal obligations. As of January 2025, there is no public evidence that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which succeeded PPPRA, has enforced or remitted the charge.

The House mandated the committee to investigate the outstanding funds and responsible officials and report within four weeks for further legislative action. The Speaker confirmed the committee would be constituted soon.