240
By Tracy Moses
The Minister of State for Works, Mr. Bello Mohamed Goronyo, has disclosed that the Federal Government requires approximately N880 billion annually to effectively maintain federal road network across the country.
Goronyo made this known on Monday during a public hearing organized by the House of Representatives Ad-Hoc Committee investigating the implementation and remittance of the 5 percent user charge on petroleum products and diesel as provided for in the Federal Roads Maintenance Agency (FERMA) Act 2007. The hearing took place at the National Assembly in Abuja.
The Minister lamented that FERMA, the agency responsible for maintaining federal roads, has suffered chronic underfunding, which has severely hampered its operations over the years.
He explained that the five percent user charge, as stipulated in the FERMA Act, was established to provide a sustainable and dedicated funding source for road maintenance and rehabilitation. However, he regretted that the mechanism has not been implemented effectively, leading to a persistent shortfall in funding.
“While FERMA requires an estimated N880 billion annually to maintain optimal road conditions, actual budgetary allocations have remained grossly inadequate, N76.3 billion in 2023, N103.3 billion in 2024, and N168.9 billion proposed for 2025,” the Minister said.
He noted that despite the gradual increase in budgetary provisions, the allocations still fall far below the funding needed to sustain Nigeria’s extensive road infrastructure.
The Minister further highlighted that the funding gap has compelled the agency to adopt a reactive maintenance approach instead of a preventive one, leading to deteriorating road conditions, increased repair costs, and disruptions to both commuters and businesses.
He emphasized the importance of a proactive strategy backed by adequate and predictable funding to ensure safe and efficient roadways nationwide. He noted that full implementation and prompt remittance of the five percent user charge would serve as a viable solution to bridge the financial shortfall, reducing reliance on annual appropriations.
Goronyo commended the House Committee for initiating the probe, describing it as a collaborative effort beyond mere oversight. He pledged the full cooperation of the Ministry of Works and FERMA in providing relevant data and documents to facilitate a thorough review.
In his address, Speaker of the House of Representatives, Rt. Hon. Tajudeen Abbas, represented by Minority Leader, Rep. Kingsley Chinda, charged the Ad-Hoc Committee to thoroughly examine the issues surrounding the implementation of the FERMA Act and propose actionable recommendations.
“The task before this Committee is clear: Nigerians are relying on you to ask the tough questions, scrutinize the relevant documents, and determine how much revenue has been generated through the 5 percent user charge since the law’s inception and how much has been disbursed to FERMA and other relevant agencies at both federal and state levels,” Chinda stated.
He added that the investigation should also provide recommendations to prevent further abuse of the law and streamline the remittance process for more efficient access to funds by concerned agencies.
Earlier, the Chairman of the Ad-Hoc Committee, Francis Waive, assured stakeholders that the panel would thoroughly examine the role of all involved agencies in the alleged abuse of the law. He said the Committee would also work to ensure that any misappropriated funds are promptly recovered and returned to FERMA.