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FG, Reps push for 5% levy on petrol, diesel for road repairs
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FERMA underfunded; NMDPRA yet to enforce legal remittance
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Fuel prices may rise despite recent drop in Lagos, Abuja
Nigerians may soon face an increase in the prices of petrol and diesel as the Federal Ministry of Works and the House of Representatives push for the enforcement of a 5 per cent road user charge on petroleum products.
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EKO HOT BLOG reports that the development was disclosed during an investigative hearing by the House Ad-Hoc Committee on Monday in Abuja, where officials called for the immediate implementation of the road user levy to address the severe funding shortfall for federal road maintenance.
Minister of State for Works, Mohammed Goroyo, noted that the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) must begin collecting the levy in line with the existing legal framework.
He said, “FERMA requires an estimated ₦880 billion annually for optimal road conditions. However, allocations have fallen far short: ₦76.3bn in 2023, ₦103.3bn in 2024, and ₦168.9bn in the 2025 budget. This underfunding results in decaying infrastructure, rising repair costs, and negative impacts on economic activity.”
The 5 per cent charge, already embedded in the Federal Roads Maintenance Agency (FERMA) Act, is designed to fund road repairs and rehabilitation sustainably. But NMDPRA’s Managing Director, Chukwuemeka Abbasi, confirmed that the framework to collect the levy was never activated, contributing to the agency’s financial constraints.
Speaker of the House, Tajudeen Abbas, had earlier recalled that the issue was debated on the floor of the House on March 19, where lawmakers criticised the non-remittance of the legally mandated charge.
Chairman of the Ad-Hoc Committee and House Committee on Rules and Business, Francis Waive, stressed that the road user charge is not a new tax or a move to increase fuel prices, but a statutory requirement that must be enforced.
“This probe is to correct years of non-compliance. Every existing law must be implemented by government agencies,” he said.
Meanwhile, Nigerians had recently seen relief in fuel prices, as outlets operated by NNPC Limited and Dangote Refinery dropped PMS prices to ₦875 and ₦895 per litre in Lagos and Abuja.
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