The price of Premium Motor Spirit (petrol) and Automotive Gas Oil (diesel) may soon increase following renewed efforts by the Federal Ministry of Works and the House of Representatives to enforce the collection and remittance of a 5 per cent road user charge on fuel products.
This was disclosed at an investigative hearing of the House of Representatives Ad-Hoc Committee on Monday in Abuja.
According to the Minister of State for Works, Mohammed Goroyo, there is an urgent need for the Nigeria Midstream and Downstream Petroleum Regulatory Authority to implement the 5 percent road user charge collection to address the funding deficit for the country’s maintenance of federal roads.
He noted that Nigeria needs N800 billion annually for road maintenance, but the budget allocated to the Federal Roads Maintenance Agency had fallen short.
“FERMA requires an estimated N880bn annually for optimal road conditions. Budgetary allocations have consistently fallen short—N76.3bn in 2023 and N103.3bn in 2024, while N168.9bn was budgeted for 2025.
READ MORE: Over 200 Inmates Escape From Pakistan Prison After Earthquake
“The consequences of this are glaring—deteriorating road conditions, increased repair costs, and prolonged disruptions for commuters and businesses alike.
“Thus, the diligent implementation and timely remittance of the five percent user charge are paramount,” he said.
On his part, Managing Director of the Federal Road Maintenance Agency, Chukwuemeka Abbasi disclosed that the template for deducting the road user charge from the prices of petrol and diesel was never implemented by NMDPRA.
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. However, for years, FERMA has grappled with severe funding inadequacies, hampering its ability to maintain our vast road network effectively.”
Follow the Parallel Facts channel on WhatsApp: https://whatsapp.com/channel/0029VaCQSAoHgZWiDjR3Kn2E
