FERMA is said to be unable to discharge its road repairs mandate due to the non-remittance of the funds by the NMDPRA
The House of Representatives has resolved to launch an investigation into the status of a 5 percent user charge meant for the maintenance of federal roads across Nigeria.
The probe will focus on the outstanding funds owed to the Federal Road Maintenance Agency (FERMA) and identify officials responsible for ensuring the implementation of the policy.
This decision follows a motion sponsored by Rep. Frederick Agbedi (PDP, Bayelsa), highlighting concerns over the remittance and utilization of the 5 percent user charge mandated under the Federal Road Maintenance Agency (Amendment) Act, 2007.
While presenting the motion, Rep. Agbedi said “Section 14(1)(h) of the FERMA Act stipulates a 5% charge on the pump price of petrol and diesel, with 40% allocated to FERMA and 60% directed to State Roads Maintenance Agencies,”
However, Rep. Agbedi noted that despite this legal framework, the defunct Petroleum Products Pricing Regulatory Agency (PPPRA) allegedly failed to remit the funds to FERMA, despite repeated legislative directives.
“In 2016, the Senate Committee on Works ordered the PPPRA to remit N634 billion to FERMA, covering unremitted funds between 2007 and 2015.” he recalled
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However, Rep. Agbedi underscored that no evidence suggests that these funds were fully disbursed. Similarly, in 2019, he said the Senate directed its Committees on Petroleum Downstream and National Planning to investigate the agency’s failure to remit the funds, yet no significant progress was made in enforcing the charge or recovering arrears owed to FERMA.
Agbedi noted that the non-remittance of these funds has crippled FERMA’s capacity to maintain and rehabilitate federal roads, leading to worsening road conditions, increased accidents, higher vehicle maintenance costs, and economic losses.
He further stated that the PPPRA had previously justified its non-compliance, arguing that implementing the 5 percent charge would raise fuel prices—despite the clear legal requirement for its enforcement.
The lawmaker emphasized that as of January 2025, there is no publicly available evidence from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)—which replaced the PPPRA—indicating that the 5 percent charge has been enforced or that the required funds have been remitted.
STAR Check: Nigerians, particularly, constituents of Sagbama/Ekeremor federal constituency of Bayelsa State, can keep tabs on the legislative performance of Sen. Agbedi throughout the 10th House here
