FERMA needs N880bn annually to maintain roads, says minister

Bello Goronyo, minister of state for works, says the Federal Roads Maintenance Agency (FERMA) needs N880 billion annually to maintain federal roads.

Goronyo spoke on Monday when he appeared before the house of representatives committee investigating the alleged non-remittance of the five percent user charge on petrol and diesel for the maintenance of federal roads.

“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.

The minister said the five percent user charge enshrined in the FERMA Act is intended to serve as a sustainable road maintenance and rehabilitation funding mechanism.

He said over the years, FERMA has grappled with severe funding inadequacies, hampering its ability to maintain the nation’s vast road network effectively.

“While the agency requires an estimated N880 billion annually for optimal road conditions, budgetary allocations have consistently fallen short of funding,” said.

Goronyo said N76.3 billion was budgeted for the agency in 2023, N103.3 billion in 2024, and N168.9 billion in 2025.

“Though these figures show gradual increases, they remain far below the necessary threshold for sustainable road maintenance,” he said.

“This persistent funding gap has forced FERMA into a reactive mode of maintenance rather than a preventive approach.

“The consequences of this are glaring-deteriorating road conditions, increased repair costs, and prolonged disruptions for commuters and businesses alike.

“A proactive strategy, backed by adequate funding, is essential to ensure smooth, safe, and efficient roadways nationwide.

“Thus, the diligent implementation and timely remittance of the 5% user charge are paramount.

“This dedicated funding stream offers a viable solution to bridge the financial gap, providing consistent resources to address Nigeria’s infrastructure needs without over-reliance on annual budget appropriations.“

Tajudeen Abbas, speaker of the house, lamented that the section of the law had not been complied with despite several attempts to compel compliance by the national assembly through its oversight activities.

Represented by Kingsley Chinda, the minority leader, Abbas said this has affected the operations of the government agencies and, by extension, Nigerians who ply public roads.

Abbas said a “comprehensive investigation” into the status of the five percent user charge will determine the extent of the law’s violation, the amount of money unremitted, and those responsible for the non-implementation.

He said the committee should propose “strong recommendations” on how to forestall further abuse of the law and streamline the remittance processes so that the relevant government agencies can easily access the funds.

“I urge you to avoid sentiments in your work and also avoid cases that may cause the committee to be accused of lack of fair hearing and witch-hunt,” Abbas said.

ROAD FUND

Chukwuemeka Agbasi, FERMA’s director-general, called for the establishment of a road fund for the agency.

“There is a need to create a road fund account for FEMA. This account will be a dedicated account for road maintenance with statutory protection, ensuring that funds cannot be diverted or delayed by the ministry of finance or Central Bank of Nigeria,” he said.

Agbasi called for stakeholder engagement to create awareness on the rational for the five percent user charge.

He said the federal government can mandate the reduction and remittance of the 5 percent charge through legislative and executive enforcement.

Mukaila Oseni, director of operations at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said the FERMA Act does not provide specific guidelines on how the remittances should be made.

The committee ruled that NMDPRA should compile the funds needed to be remitted to FERMA and present it at the next sitting.