As the Federal Ministry of Works and the House of Representatives push for the implementation and remittances of a five per cent road user charge to be factored into fuel and diesel prices, there are worries that the price of Premium Motor Spirit (PMS), also known as petrol and automotive gas oil (diesel), may rise.
The call for implementing the charge was made public on Monday in Abuja at an investigative session of the House of Representatives Ad-Hoc Committee.
Join our WhatsApp ChannelMohammed Goroyo, Minister of State for Works, emphasised that to solve the financing shortfall for the nation’s federal road maintenance, the Nigeria Midstream and Downstream Petroleum Regulatory Authority must immediately introduce a five per cent road user charge collection system.
He pointed out that Nigeria requires N800 billion annually for road upkeep, but the Federal Roads Maintenance Agency’s budget has not kept pace.
According to estimates, the Federal Road Maintenance Agency (FERMA) needs N880 billion a year to maintain good road conditions. The amount allotted in the budget has continuously fallen short; N168.9 billion was planned for 2025, but N76.3 billion was allocated in 2023 and N103.3 billion in 2024.
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This has obvious repercussions, including worsening road conditions, higher repair expenses, and extended delays for both businesses and commuters, the minister stated.
“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,” he said.
FERMA’s Managing Director, Chukwuemeka Abbasi, revealed that NMDPRA never used the template for subtracting the road user charge from the cost of petrol and diesel.
According to him, “the five per cent 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.”
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Tajudeen Abbas, the Speaker of the House of Representatives, earlier recalled that the House had discussed a motion in plenary on 19 March that exposed the failure to remit the five per cent user charge on petroleum products intended for road maintenance under the FERMA Amendment Act, 2007.
Francis Waive, the committee chairman who also serves as the chairman of the House Committee on Rules and Business, explained that the 5 per cent road user tax is not an attempt to change the legislation or raise the cost of petroleum products because it has been in place since 2007.
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He stressed that the goal of the investigation was to resolve the irregularities caused by people breaking the law, and that the House will make sure that everyone, including government entities, follows all laws approved by parliament.
This comes as the cost of petrol has decreased for Nigerians in recent weeks.
The retail prices of PMS in Lagos and Abuja were recently reduced to N875 and N895 per liter by Dangote Refinery and its partners, as well as the Nigerian National Petroleum Company Limited.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
