Minister of State for Works has disclosed that FERMA requires N880b yearly to bridge road maintenance funding gaps
The Minister of State for Works, Bello Muhammad Goronyo, has called for the diligent implementation and timely remittance of the 5 percent user charge on petroleum products and diesel, as provided for in the Federal Roads Maintenance Agency (FERMA) Act, 2007, describing it as a critical solution to Nigeria’s enduring road infrastructure challenges.
Parliament Reports recalls that following a motion by Rep. Frederick Agbedi (PDP Bayelsa), the House of Representatives established an ad-hoc committee to investigate the implementation and remittance of the 5 percent user charge on petrol and diesel, as mandated by Section 14(1)(h) of the Federal Roads Maintenance Agency (FERMA) (Amendment) Act, 2007.
This charge is intended to provide sustainable funding for the maintenance of federal and state roads, with 40 percent allocated to FERMA and 60 percent to state road maintenance agencies
Speaking on Monday during an investigative hearing organized by the House of Representatives Ad-Hoc Committee investigating the implementation and remittance of the statutory charge, the minister emphasized the urgent need to address the persistent funding shortfall that has long plagued road maintenance efforts across the country.
“FERMA requires an estimated ₦880 billion annually to maintain optimal road conditions, but budgetary allocations have fallen significantly short—₦76.3 billion in 2023, ₦103.3 billion in 2024, and ₦168.9 billion in the current 2025 fiscal year,” he noted.
The minister, who described the hearing as a pivotal moment for institutional reform, said the 5 percent user charge was originally intended as a sustainable funding mechanism for road rehabilitation. However, its partial implementation and irregular remittance have rendered it ineffective in closing Nigeria’s infrastructure deficit.
Underlining the Federal Ministry of Works’ alignment with President Bola Ahmed Tinubu’s Renewed Hope Agenda, Goronyo reaffirmed the administration’s commitment to delivering “world-class infrastructure that fosters economic growth and improves the daily lives of citizens.”
He warned that unless Nigeria transitions from a reactive to a preventive approach to road maintenance, costs will continue to escalate, with severe consequences for commuters, trade, and national productivity.
“Our roads are the lifelines of commerce and social integration,” Goronyo stated. “Their maintenance is not merely a policy directive—it is a national imperative.”
The minister pledged full cooperation from the ministry and FERMA, assuring the committee of access to all relevant documents to support the ongoing investigation.
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Speaking with journalist after the hearing, he commended the House of Representatives for its commitment to transparency and reform, expressing optimism that the outcomes of the investigation will provide lasting solutions going forward.
In his remarks, the House Speaker Tajudeen Abbas, represented by House Minority Leader Rep. Kingsley Chinda (PDP Rivers), tasked the committee with uncovering the extent of abuse and neglect of the FERMA Act over the years.
“This Committee must determine the total amount accrued from the 5 percent user charge since the enactment of the law, how much has been remitted to FERMA, and what remains outstanding. Nigerians are watching closely,” Abbas stated.
In response, committee chairman Rep. Francis Waive assured that the investigation would be thorough. He pledged to expose all agencies involved in the misuse or diversion of the funds and to ensure the prompt recovery of any misappropriated amounts.
