The Minister of State for Works, Bello Goronyo, Monday, disclosed that the federal government requires an estimated N880 billion annually for the optimal maintenance of its roads nationwide through the Federal Roads Maintenance Agency (FERMA).

Goronyo disclosed this at a public hearing organised by the House of Representatives Ad-Hoc Committee on the Need to Investigate the Implementation and Remittance of the 5 per cent User Charge on Petroleum Products and Diesel under the FERMA Act, 2027, held in Abuja.

The minister, who lamented that FERMA was grossly underfunded over the years, explained that 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.

He, however, lamented that over the years, FERMA had grappled with severe funding inadequacies, hampering its ability to maintain Nigeria’s vast road network effectively.

According to him, “While the agency requires an estimated 880 billion naira 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.

The Minister regretted that the persistent funding gap had forced the Agency into a reactive mode of maintenance rather than a preventive approach.

According to him, “The consequences of this are glaring-deteriorating road conditions, increased repair costs, and prolonged disruptions for commuters and businesses alike.

He pointed out that there was a need for “A proactive strategy, backed by adequate funding to ensure smooth, safe, and efficient roadways nationwide.

According to him, “Thus, the diligent implementation and timely remittance of the 5% user charge are paramount.

He pointed out that the dedicated funding stream would offer a viable solution to bridge the financial gap, providing consistent resources to address Nigeria’s infrastructure needs without over-reliance on annual budget appropriations.

The Minister acknowledged that the investigation by the Ad-Hoc Committee was more than an oversight function but a collaborative effort to identify challenges and establish robust mechanisms for efficient resource utilization.

He assured that the Federal Ministry of Works and FERMA were ready to cooperate fully to provide all relevant information and documentation to ensure a comprehensive review.

Earlier, Speaker of the House of Representatives, Tajudeen Abbas, who was represented by the House Minority Leader, Kingsley Chinda, charged the committee to dig deep into the issues surrounding the abuse of the Act over the years and come up with viable recommendations to make it more effective

According to him, “The assignment for this committee is clear: Nigeria now 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.

“This 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”.

Speaking earlier, the Chairman of the Ad-Hoc Committee, Francis Waive, assured that they would be thorough with all the agencies concerned in the abuse of the Act over the years, the levels of their involvement and ensure the immediate refunds of amounts involved to FERMA.

In his presentation, the Managing Director of FERMA, Emeka Agbasi, said that the implementation of the 5% user charge is what the agency has been waiting for its commencement for eighteen years.

He lamented that there is insufficient funding for the agency to address the sordid state of the road sector, adding that the implementation of a 5% user charge on petroleum products will have a huge impact on the road sector.

He said that many government agencies are not compliant with the provisions of the FERMA Act 2007 on road user charge, adding that it is not new and applies to other countries.