The Minister of State for Works, Mohammed Goroyo, on Monday disclosed that the federal government would require approximately ₦880 billion annually to maintain Nigeria’s federal road network in optimal condition.
Goroyo made the declaration during an investigative hearing of the House of Representatives Ad-Hoc Committee probing the implementation and remittance of the 5% user charge for road maintenance under the Federal Road Maintenance Agency (FERMA) Act.
“FERMA requires an estimated ₦880bn annually for optimal road conditions. Budgetary allocations have consistently fallen short—₦76.3bn in 2023 and ₦103.3bn in 2024, while ₦168.9bn was budgeted for 2025,” Goroyo stated.
“Though these figures show gradual increases, they remain far below the necessary threshold for sustainable road maintenance. This persistent funding gap has forced FERMA into a reactive mode of maintenance rather than a preventive approach,” he added.
He stressed that inadequate funding continues to undermine the country’s road infrastructure, despite the existence of a dedicated user charge designed to mitigate the shortfall.
On his part, FERMA Managing Director Chukwuemeka Abbasi noted that the 5% user charge on petroleum products—legally established to provide a sustainable road maintenance fund—has never been implemented.
“The 5% 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,” Abbasi said.
He also revealed that the defunct Petroleum Product Pricing Regulatory Authority, now the Nigeria Midstream Petroleum Regulatory Authority, failed to enforce the template for deducting the charge from fuel prices.
Declaring the hearing open, Speaker of the House of Representatives Tajudeen Abbas said the House passed a motion on March 19 to investigate the non-implementation of the FERMA Amendment Act, 2007.
“We owe Nigerians the obligation by sections 88 and 89 of the Constitution… to conduct a comprehensive investigation into the status of the 5% user charge to determine the extent of the violation of the law and the amount of money unremitted and those responsible,” Abbas said.
Committee Chairman Francis Waive clarified that the 5% charge is not a new tax or an amendment to current fuel pricing laws but a long-standing provision that has been ignored.
“The purpose of the investigation is to address the anomalies existing through disobedience to existing laws… The House will ensure that every law passed by the Parliament is complied with both by individuals and agencies of government,” Waive added.
