The Minister of State for Works, Mohammed Bello Goroyo, on Monday said the Federal Government requires about ₦880 billion annually to maintain all federal roads across the country.

Goroyo made the disclosure during an investigative hearing organised by the House of Representatives ad hoc committee on the implementation and remittances of the 5 percent user charge for road maintenance under the Federal Road Maintenance Agency (FERMA).

Also speaking at the hearing, FERMA Managing Director, Chukwuemeka Agbasi, revealed that the road user charge deduction from the pump price of petrol and diesel has never been implemented.

He said the defunct Petroleum Products Pricing Regulatory Agency (PPPRA) and its successor, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), failed to enforce the policy.

Goroyo noted that poor funding remains the biggest challenge facing Nigeria’s road infrastructure.

He lamented that although the road user charge was designed to fill the funding gap, FERMA and the ministry have been unable to access the funds since 2007.

He said, “Under the visionary leadership of His Excellency, President Bola Ahmed Tinubu, GCFR, the Federal Ministry of Works remains 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 our citizens.

“Our roads are the lifelines of commerce and social integration, and their maintenance is not merely a policy directive but a national imperative.

“The 5 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.

“While the agency requires an estimated ₦880 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 budgeted for 2025.

“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.

“The consequences of this are glaring-deteriorating road conditions, increased repair costs, and prolonged disruptions for commuters and businesses alike. A proactive strategy, backed by adequate funding, is essential to ensuring smooth, safe, and efficient roadways nationwide.

“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”.

Goroyo said the investigation by the Ad-Hoc Committee is more than an oversight function, but a collaborative effort to identify challenges and establish robust mechanisms for efficient resource utilization, saying the Federal Ministry of Works and FERMA stand ready to cooperate fully, providing all relevant information and documentation to ensure a comprehensive review.

He reaffirm the unwavering dedication of the Federal Ministry of Works to ensuring that every naira collected as user charge serves 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.”

Declaring the hearing open, Speaker of the House of Representatives, Abbas Tajudeen recalled that the House had on March 19 considered a motion brought by a Member of the House which showed a non-implementation of remittance of the 5 percent user charge on petroleum products meant for road maintenance under the Federal Roads Maintenance Agency (FERMA) Amendment Act, 2007.

Abbas said the House had expressed concern over the failure of relevant agencies of government to enforce the statutory charge and remittance of the fund to FERMA and adopted the motion which resulted in the constitution of this ad-hoc committee to investigate the circumstances for the failure of the relevant agencies of government to comply with the section of the Act.

The Speaker recall that Section 14(1)(h) of the FERMA Amendment Act 2007 stipulates that 5 percent of the pump price of petrol and diesel should be allocated to FERMA and the State Maintenance Agencies in the proportion of 40 percenr and 60 percent respectively.

He said over the years, this section of the Act has not been complied with despite different attempts by the National Assembly through their oversight activities to compel compliance and has affected the operations of the beneficiary agencies of government and by extension the Nigerian people who ply public roads.

He said “we owe Nigerians the obligation by sections 88 and 89 of the Constitution of the Federal Republic of Nigeria 1999 (as amended) to conduct a comprehensive investigation into the status of the 5 percent user charge to determine the extent of the violation of the law and the amount of money unremitted and those responsible for the non-implementation”.

He said Nigerians looks up to you to ask the relevant questions and scan through the necessary documents to establish how much has accrued from the collection of the 5% user charge from the date of commencement of the law till the time of this investigation and how much standing to the benefit of FERMA and similar agencies at the state level.

He stressed that the investigative hearing should also be able to make strong recommendations on how to forestall further abuse of the law and streamline the remittance processes for ease of access to the funds by the relevant government agencies.

In his presentation, the FERMA MD said despite efforts in the past, the agency has not been able to access the charge as those who are supposed to implement it has failed to present a template for the implementation.

He said former President Goodluck Jonathan gave a presidential directive in 2011 for the release and implementation of the template, adding that after that, nothing has been about it.

Chairman of the ad hoc committee, Francis Waive said the user charge is not an attempt to increase prices of petroleum products or to amend the law since it has been part of the law since 2007.

He said the essence of the investigation was to correct the anomalies existing through disobedience to exiating laws, adding that the House will ensure that every law passed by the parliament will be obeyed.

He said this was the best time to implement the user charge, adding that all relevant agencies of government has been invited to be part of the investigation.