The Federal Government plans to spend about N880 billion every year to maintain the country’s federal road network, Minister of State for Works, Mohammed Goroyo, announced on Monday.
At an investigative hearing held by the House of Representatives Ad-Hoc Committee in Abuja, Goroyo and the Managing Director of the Federal Road Maintenance Agency (FERMA), Chukwuemeka Abbasi , addressed lawmakers on the implementation and remittances of the five per cent user charge for road maintenance, as mandated under the FERMA Act.
Goroyo stated, “FERMA needs an estimated N880bn each year to keep roads in optimal condition. However, the government has consistently underfunded the agency, allocating only N76.3bn in 2023, N103.3bn in 2024, and N168.9bn for 2025.”
He noted that while budget allocations are increasing gradually, they still fall far short of the amount needed. “This funding shortfall has pushed FERMA into reactive maintenance rather than preventive action, resulting in deteriorating road conditions, higher repair costs, and greater disruptions for commuters and businesses.”
Goroyo emphasized the urgent need for a proactive strategy supported by sustainable funding, calling the full implementation and remittance of the five per cent user charge** critical to addressing Nigeria’s infrastructure challenges. “This dedicated funding stream can close the financial gap and reduce dependency on yearly budgets,” he added.
The minister also revealed that FERMA and the Ministry of Works have been unable to access the user charge funds, even though the mechanism was intended to fill the funding void.
Supporting Goroyo’s remarks, FERMA’s Managing Director, Abbasi, criticized the former Petroleum Product Pricing Regulatory Authority (PPPRA) – now the Nigeria Midstream and Downstream Petroleum Regulatory Authority – for failing to implement the deduction template for the user charge from petrol and diesel prices.
He stated, “Under President Bola Tinubu’s Renewed Hope Agenda, the Ministry of Works remains committed to building world-class infrastructure that drives economic growth and improves citizens’ lives. Our roads are essential to commerce and national unity, and maintaining them must be a national priority.”
Abbasi reiterated that the five per cent user charge, as outlined in the FERMA Act, was created to ensure consistent funding for road maintenance, but FERMA continues to face critical funding challenges** that undermine its operations.
Opening the hearing, Speaker of the House of Representatives, Tajudeen Abbas, reminded attendees that the House had debated a motion on March 19 revealing the long-standing failure to remit the five per cent charge on petroleum products.
Abbas stated, “The Constitution empowers us to investigate this issue and determine how much money remains unremitted, who is responsible, and how we can enforce the law moving forward.”
He urged the committee to produce actionable recommendations to prevent future violations, improve compliance, and streamline access to the funds by responsible agencies.
Committee Chairman Francis Waive, who also chairs the House Committee on Rules and Business, clarified that the user charge does not amount to a new tax or price hike. “This charge has existed in law since 2007. Our investigation focuses on correcting systemic disobedience and ensuring full compliance with the law,” he said.
Waive assured Nigerians that the House will continue to uphold its legislative responsibility and enforce compliance among both public officials and institutions.
