The Federal Government has disclosed that maintaining Nigeria’s extensive federal road network will require approximately ₦880 billion each year.
This was revealed by the Minister of State for Works, Mohammed Goroyo, during an investigative hearing held by the House of Representatives Ad-Hoc Committee in Abuja on Monday.
The hearing focused on the implementation and remittance of the five per cent user charge for road maintenance as stipulated under the Federal Road Maintenance Agency (FERMA) Amendment Act of 2007.
According to Goroyo, current budgetary allocations to FERMA fall significantly short of the required funding, resulting in poor road conditions and reactive maintenance strategies. “In 2023, only ₦76.3 billion was allocated. This rose to ₦103.3 billion in 2024 and ₦168.9 billion in 2025. Despite these increases, the allocations are still well below what is needed to keep our roads in good condition,” he said.
Goroyo emphasized that the lack of consistent funding has pushed the agency into a cycle of emergency repairs, which is costlier and less effective in the long term. “Without adequate funding, preventive maintenance is impossible, and this leads to further deterioration of our roads, increased costs, and disruptions for road users,” he added.
He advocated for the full implementation of the five per cent user charge on petroleum products, which he described as a sustainable and dedicated funding stream. “We need to move from depending solely on budgetary allocations. The implementation and timely remittance of this charge can help close the funding gap,” the minister stated.
Also speaking at the session, FERMA Managing Director, Chukwuemeka Abbasi, noted that the statutory five per cent road user charge had not been implemented by the defunct Petroleum Products Pricing Regulatory Agency, now the Nigeria Midstream and Downstream Petroleum Regulatory Authority.
“Our roads are the arteries of economic growth and social unity,” Abbasi said. “The failure to implement this law over the years has greatly affected our ability to maintain and rehabilitate critical infrastructure.”
The Speaker of the House of Representatives, Tajudeen Abbas, declared the hearing open by reaffirming the legislature’s constitutional duty to investigate the non-remittance of the statutory charge. “We must determine the level of violation of the FERMA Act and ensure accountability for unremitted funds,” he stated.
Chairman of the Ad-Hoc Committee, Francis Waive, who also chairs the House Committee on Rules and Business, clarified that the investigation is not aimed at increasing fuel prices but at ensuring compliance with an existing law. “The FERMA Amendment Act was passed in 2007. This charge is not new. Our concern is that it has not been implemented,” Waive noted.
He stressed that the committee’s goal is to correct ongoing noncompliance and recommend solutions that will guarantee efficient and lawful remittance procedures, thereby enabling FERMA to deliver on its mandate.