To adequately maintain roads infrastructures in Nigeria, over N800 billion is required yearly.
This was the position of the Minister of State for Works, Barr. Bello Muhammad, Goronyo and the Managing Director and CEO of the Federal Roads Maintenance Agency (FERMA), Dr. Emeka Agbasi.
They spoke on Monday during the Public Hearing Of the House of Representatives Ad-Hoc Committee on the Need to Investigate the Implementation and Remittance of the 5% User Charge on Petroleum Products and Diesel Under the FERMA Act, 2007, chaired by Hon. Francis Waive.
According to them, the sector has been grossly underfunded over the years, especially with the non-implementation of the 5% User Charge on Petroleum Products and Diesel.
The Minister of State for Works, Goronyo said "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.
"While the agency requires an estimated N880 billion annually for optimal road conditions, have allocations budgetary consistently fallen short #76.3 billion in 2023, N103.3 billion in 2024, and #168.9 billion budgeted for 2025.
"Though these figures show gradual increases, they remain far below the necessary threshold for sustainable road maintenance." he stated
He noted that under the visionary leadership of President Bola Ahmed Tinubu, the Federal Ministry of Works has remained steadfast in the Renewed Hope Agenda-an agenda dedicated to delivering world-class infrastructure that fosters economic growth, strengthens connectivity, and enhances the daily lives of Nigerians.
According to him, the roads are the lifelines of commerce and social integration, stressing that their maintenance is not merely a policy directive but a national imperative.
The persistent funding gap, the Minister said, has forced FERMA into a reactive mode of maintenance rather than a preventive approach.
Goronyo said that the consequences included glaring-deteriorating road conditions, increased repair costs, and prolonged disruptions for commuters and businesses alike.
He said that a proactive strategy, backed by adequate funding, is essential to ensure smooth, safe, and efficient roadways nationwide.
The Minister added "Thus, the diligent implementation and timely remittance of the 5% user charge are paramount. This dedicated funding stream offers a viable solution to bridge the financial gap, providing consistent resources to address Nigeria's infrastructure needs without over-reliance on annual budget appropriations.
"This investigation by the Ad-Hoc Committee is more than an oversight function-it is a collaborative effort to identify challenges and establish robust mechanisms for efficient resource utilization.
"The Federal Ministry of Works and FERMA stand ready to cooperate fully, providing all relevant information and documentation to ensure a comprehensive review."
He assured that every naira collected as user charge by the Federal Ministry of Works will serve its intended purpose-building and maintaining roads that empower the Nigerian people and drive economic prosperity.
"The insights gained from this investigation will not only enhance public trust but also reinforce the integrity of the Renewed Hope Agenda, translating policy into tangible improvements in our national infrastructure." he stated
On his part, the FERMA Managing Director, Dr. Emeka Agbasi, disclosed that the current funding of the Agency has been far below the existing challenges on the road network.
According to him, the challenges range from pavement failure, deteriorating bridges, missing or damaged road furniture and emerging environmental impacts caused by climate change.
The other, he said, include maintenance backlog caused by insufficient funding over the years.
"To illustrate the funding shortfalls, the current estimate required to recover failures on the Federal road network is N800bn. The distribution is shown below" he stated
The associated impacts of the poor road infrastructure on the nation, according to him, include Disruption of Connectivity and Trade, Impede Employment Opportunities, Encumbered Access to Education and Healthcare, Deterrent to Foreign Direct Investment (FDI), Increase Road Accidents and Associated Costs.
The FERMA Boss listed other impacts to include Urban Congestion and Pollution, Increase Travel Time, Increase Vehicle Operating Cost, Increase Cost of Goods and Services, High logistics costs and Endangered lives and properties of her citizens.
Apart from the western countries, he said countries with road funds in West Africa included Benin, Burkina Faso, Ghana, Ivory Coast, Niger, Guinea, Senegal, Togo, Mali, and Sierra Leone
To fully realize the 5% user charge and its benefits, he charged the Committee to note and consider a multi-pronged approach including:
"Amendment of FERMA Act (2007): To include clear and mandatory provisions for the collection, administration, and auditing of the 5% user charge.
"Creation of a FERMA Road Fund Account: Establish a dedicated Road Maintenance Fund with statutory protection, ensuring funds cannot be diverted or delayed by the Ministry of Finance or CBN.
"Stakeholder Engagement and Public Education: Launch awareness campaigns to explain the rationale and benefits of the charge, which could help gain public support and reduce resistance.
"Synchronize with Subsidy Removal Framework: Now that fuel subsidies are being phased out, the user charge can be transparently built into pricing structures with public accountability.
"Full Enforcement of the Existing FERMA Amendment Act: The federal government can mandate the deduction and remittance of the 5% charge through legislative and executive enforcement."
By addressing these areas, the FERMA Boss said Nigeria can develop a sustainable and efficient road Infrastructure system that supports economic growth and improves the quality of life for its citizens.
He concluded by saying "The 5% user charge on petroleum products, as outlined in the FERMA (Amendment) Act of 2007, remains a critical yet underutilized policy tool for addressing Nigeria's road intrastructure crisis.
"Its full and transparent Implementation offers a sustainable pathway to reversing the alarming state of Nigerian roads, boosting economic performance, and improving the quality of life for millions of citizens.
"In an era where public resources are stretched thin, tapping into legally mandated alternative funding sources is not just necessary -it is imperative," Dr. Emeka Agbasi stated
The Chairman of the the Ad-Hoc Committee, Hon Francis Waive, noted that the user charge was designed as a statutory revenue stream to ensure continued maintenance and rehabilitation of federal roads across the country.
But he said there have been persistent concerns and questions surrounding the actual implementation of the provision.
Reports and public concerns, he noted, suggested that the money was used for non-price petrol oil.
"The user charge is either not being properly contented with non-returnable goods or not being correctly accounted for in time to the completion of the law."
He explained that the committee was therefore convened by the House to uncover the status, presence, and level of compliance with the FERMA Act by the relevant agents of government, including Governor of the Central Bank, the Federal Minister of Finance, through the Federal Ministry of Petroleum Resources, the Federal Inland Revenue Service, among others.