August 6, 2025
General

Federal Government Projects N880bn Yearly Requirement for Road Maintenance, Seeks Implementation of User Charge

The Federal Government has revealed that an estimated ₦880 billion is required annually to keep Nigeria’s extensive federal road network in optimal condition. This figure was disclosed by the Minister of State for Works, Hon. Mohammed Goroyo, during an investigative session convened by the House of Representatives Ad-Hoc Committee probing the status of the statutory five per cent user charge intended for road maintenance.

Speaking in Abuja on Monday, the Minister lamented the consistent shortfall in federal budgetary allocations for road upkeep. According to him, the allocations to the Federal Road Maintenance Agency (FERMA) have remained grossly insufficient over the years. He disclosed that only ₦76.3 billion was allocated in 2023, ₦103.3 billion in 2024, and ₦168.9 billion has been earmarked for 2025. While he acknowledged the marginal increase across the years, Goroyo stressed that these figures are still a far cry from what is needed to maintain Nigerian roads sustainably.

“The reality is that FERMA requires a minimum of ₦880 billion annually to maintain our roads at optimal condition,” Goroyo stated. “With persistent underfunding, the agency has been limited to a reactive mode of operations—attending to road failures only after they occur, rather than preventing them. The result is what we all see: worsening road conditions, skyrocketing repair costs, and frequent disruptions for road users.”

He stressed that a proactive, well-funded strategy remains the most viable solution to addressing the country’s crumbling road infrastructure. Goroyo noted that the statutory five per cent road user charge, meant to be drawn from petrol and diesel prices, was designed to bridge this funding gap and ensure consistent financing of maintenance projects without depending solely on annual budgets. However, the funds have remained largely inaccessible, as the user charge has not been properly implemented.

Further revelations emerged from the Managing Director of FERMA, Chukwuemeka Agbasi, who confirmed that the template to enforce the user charge had not been executed by the now-defunct Petroleum Products Pricing Regulatory Agency (PPPRA), currently subsumed under the Nigeria Midstream and Downstream Petroleum Regulatory Authority. This failure, he said, has significantly crippled FERMA’s capacity to discharge its statutory responsibility effectively.

Agbasi, in his remarks, reiterated the commitment of the Federal Ministry of Works to the Renewed Hope Agenda of President Bola Tinubu. He stated that under the current administration, infrastructure development remains a top priority. “Our roads are the backbone of national integration and commerce. Ensuring their functionality is not just a bureaucratic duty but a fundamental national need,” he said.

He described the user charge, as stipulated in the FERMA Amendment Act of 2007, as a strategic funding mechanism that, if fully enforced, would provide the agency with steady revenue for comprehensive maintenance and rehabilitation of federal roads. He also decried the severe funding gaps that FERMA continues to grapple with, which he says have had a direct impact on the quality and lifespan of Nigeria’s road infrastructure.

Declaring the investigative hearing open, Speaker of the House of Representatives, Rt. Hon. Tajudeen Abbas, recalled that the lower chamber had, during a plenary session on March 19, passed a motion questioning the failure to implement and remit the five per cent user charge. He referenced Sections 88 and 89 of the 1999 Constitution (as amended), which empower the National Assembly to conduct investigations in the public interest. Abbas affirmed that the legislative probe was aimed at identifying the scale of violations surrounding the law, uncovering unremitted funds, and holding accountable those responsible for the non-implementation.

He emphasised that the outcome of the probe should include concrete recommendations that would not only prevent future abuse of the law but also streamline the process of remittance and access to funds by relevant agencies, especially FERMA.

Also speaking at the hearing, the Chairman of the Ad-Hoc Committee and House Committee on Rules and Business, Hon. Francis Waive, clarified that the user charge is not a new policy or an attempt to hike fuel prices. He stated that the law has been in existence since 2007 and remains legally binding. According to him, the focus of the probe is not legislative amendment but enforcement.

Waive said the committee would ensure that all extant laws passed by the National Assembly are strictly adhered to, whether by individuals or by government institutions. He described the current situation as a case of systemic neglect and vowed that the House would pursue corrective measures to restore compliance and accountability.

As the investigation continues, stakeholders are hopeful that the findings will lead to the recovery of unremitted funds and the implementation of a sustainable financing framework for Nigeria’s federal roads, many of which remain in dire need of urgent attention.