Speaker Abbas decries non-remittance of 5% of petrol price to FERMA

Speaker of House of Representatives, Rep. Tajudeen Abbas, has decried the non-implementation and non-remittance of the five per cent of the petrol pump price to Federal Road Maintenance Agency, FERMA.

Mr Abbas stated this while declaring open an investigative hearing on non-implementation and remittance of the five per cent user charge in Abuja on Monday.

The speaker, who was represented by represented by the Minority Leader, Rep. Kingsley Chinda, noted that the law was still being flouted by relevant authorities in spite of the efforts of the lawmakers.

“Distinguished guests, it is important to recall that Section 14(1)(h) of the FERMA Amendment Act 2007 stipulates that five per cent of the pump price of petrol and diesel should be allocated to FERMA and the State Maintenance Agencies,” he said.

Mr Abbas quoted the law as stipulating that the allocation should be in the proportion of 40 per cent and 60 per cent respectively for FERMA and state maintenance agencies.

He, however, expressed the regret that over the years, the section of the Act had not been complied with.

This, Mr Abbas said, had affected the operations of the beneficiary agencies of government and, by extension, the Nigerian people plying public roads.

He recalled that the house had, on March 19, considered a motion brought by a member, which showed a non-implementation of remittance of the five per cent user charge.

“The house had expressed concern over the failure of relevant agencies of government to enforce the statutory charge and remittance of the fund to FERMA, and adopted the motion.

“This resulted in the constitution of this ad-hoc committee to investigate the circumstances for the failure of the relevant agencies of government to comply with the section of the Act,” he said.

Mr Abbas, who reaffirmed the commitment of the house to the Nigerian people, said this was in accordance with sections 88 and 89 of the Constitution of the Federal Republic of Nigeria.

He called for investigation into the status of the five per cent user charge to determine the extent of the violation of the law, the amount of money unremitted and those responsible for it.

“The assignment for this committee is clear: Nigeria now looks up to you to ask the relevant questions and scan through the necessary documents,” he said.

The speaker also urged stakeholders to make strong recommendations on how to forestall further abuse of the law.

Such recommendations, he said, would streamline the remittance processes for ease of access to the funds by the relevant government agencies.

Earlier, the Chairman of the ad-Hoc committee, Rep. Francis Waive, said that the gathering underscored a shared commitment to accountability, transparency and advancement of the country’s infrastructure.

Mr Waive, who lauded President Bola Tinubu’s visionary leadership, said that the Federal Ministry of Works remained steadfast in his administration’s Renewed Hope Agenda.

He affirmed Tinubu’s commitment to delivering world-class infrastructure for economic growth, strengthened connectivity and enhanced daily lives of citizens.

“Our roads are the lifelines of commerce and social integration, and their maintenance is not merely a policy directive but a national imperative,” he said.

According to him, the five per cent user charge, as enshrined in the FERMA Act, is aimed at serving as a sustainable funding mechanism for road maintenance and rehabilitation.

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

“While the agency requires an estimated $880 billion annually for optimal road conditions, budgetary allocations have consistently fallen short.

“It was 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,” he said.

Waive said that the persistent funding gap had forced FERMA into a reactive mode of maintenance rather than a preventive approach.

He highlighted the consequences of the situation to include: glaring-deteriorating road conditions, increased repair costs and prolonged disruptions for commuters and businesses alike.

The lawmaker, therefore, called for a proactive strategy, backed by adequate funding, which, he said, was essential to ensure smooth, safe and efficient roadways nationwide.

Also speaking, the Minister of State for Works, Mr Bello Goronyo, commended Tinubu for initiating a plethora of reforms.

Goronyo said that the user charge, as enshrined in the FERMA Act, was designed to maintain roads across the country.

He, however, said that the non-compliance with the spirit and letters of the act had hampered the maintenance of the country’s vast road network.

The minister reiterated the commitment of his ministry and FERMA to ensuring transparency and accountability on road maintenance across the country.
NAN