Minister of State for Works, Bello Mohamed Goronyo on Monday said that the Federal Government needed an estimated N880 billion annually for the optimal maintenance of its roads nationwide through the Federal Roads Maintenance Agency (FERMA).
The minister who disclosed this while speaking 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 lamented that the agency was being grossly under-funded over the years.
He explained that the five percent user charge, as enshrined in the FERMA Act, was designed to serve as a sustainable funding mechanism for road maintenance and rehabilitation.
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The minister lamented that over the years, FERMA had grappled with severe funding inadequacies, hampering its ability to maintain Nigerians vast road network effectively.
He said, “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 roads maintenance nationwide.”
The minister regretted that the persistent funding gap had forced the agency into a reactive mode of maintenance rather than a preventive approach.
He said, “the consequences of this are glaring-deteriorating road conditions, increased repair costs, and prolonged disruptions for commuters and businesses alike.”
Goronyo pointed out that there was the need for “a proactive strategy, backed by adequate funding to ensuring smooth, safe, and efficient roadways nationwide.
“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 utilisation.
He assured that he Federal Ministry of Works and FERMA were ready to cooperate fully to provide all relevant information and documentation to ensure a comprehensive review.
In his remarks, the Speaker of the House of Representatives, Tajudeen Abbas who was represented by the House Minority Leader, Kingsley Chida charged the ad-hoc 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.
He said, “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 had assured that the committee would touch light 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 the agency.
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