There may be an imminent increment in prices of premium motor spirit (petrol) and automotive gas oil (diesel) as the Federal Ministry of Works and the House of Representatives, move to enforce a five percent road user charge to be included in fuel and diesel pricing.
This was revealed during an investigative hearing of the House of Representatives Ad-Hoc Committee in Abuja, on Monday, June 02.
According to the Minister of State for Works, Mohammed Goroyo, the Nigeria Midstream and Downstream Petroleum Regulatory Authority must urgently begin collecting the five percent road user charge, to address the significant funding gap in maintaining the country’s federal road network.
Goroyo, explained that Nigeria requires about N800 billion annually to maintain its roads. However, allocations to the Federal Roads Maintenance Agency have fallen significantly short of this need.
In his words: “FERMA requires an estimated N880 billion annually for optimal road conditions. Budgetary allocations have consistently fallen short—N76.3 billion in 2023, N103.3 billion in 2024, and N168.9 billion in 2025. The consequences of this are glaring—deteriorating road conditions, increased repair costs, and prolonged disruptions for commuters and businesses alike. Thus, the diligent implementation and timely remittance of the five percent user charge are paramount.”
Managing Director of the Federal Road Maintenance Agency, Chukwuemeka Abbasi, further disclosed that the template for deducting the road user charge from the prices of petrol and diesel was never implemented by NMDPRA.
He explained that “the five percent user charge, as enshrined in the FERMA Act, was designed to serve as a sustainable funding mechanism for road maintenance and rehabilitation. However, for years, FERMA has grappled with severe funding inadequacies, hampering its ability to maintain our vast road network effectively."
Advertise on NigerianEye.com to reach thousands of our daily users
One would wonder, why didn't they remember the 800 billion while passing the 2025 budget with additional 6.9 trillion naira? Where's their concern for road maintenance when they inserted 266m for 1 streetlight??
ReplyDeleteThis administration is centered on punishing Nigerians.