By Samuel Adeola
The Minister of State for Works, Bello Goronyo, has disclosed that the Federal Roads Maintenance Agency (FERMA), requires approximately ₦880 billion annually to adequately maintain federal roads across Nigeria.
Goronyo made this known on Monday during an appearance before the House of Representatives Committee investigating the non-remittance of the 5% user charge on petrol and diesel, which is statutorily allocated for road maintenance under the FERMA Act.
He explained that although the user charge was established to sustainably fund road repairs, FERMA has continued to face severe funding constraints, hindering its capacity to maintain the country’s road network effectively.
“In 2023, FERMA received ₦76.3 billion, ₦103.3 billion in 2024, and an expected ₦168.9 billion in 2025. While these figures show incremental growth, they fall far short of the ₦880 billion required annually,” Goronyo said.
The minister noted that due to inadequate funding, FERMA has resorted to reactive rather than preventive maintenance, which has resulted in deteriorating road conditions, escalating repair costs, and increased hardship for road users and businesses.
He emphasized that proper implementation of the 5% user charge would bridge the funding gap and reduce FERMA’s dependence on annual budgetary allocations.
In his remarks, Speaker of the House, Tajudeen Abbas represented by Minority Leader Kingsley Chinda, criticized the persistent non-compliance with the FERMA Act despite legislative oversight.
He charged the committee to conduct a comprehensive investigation to determine the extent of unremitted funds, legal violations, and those responsible.
He also urged the committee to propose strong recommendations to prevent future abuse and streamline the remittance process for responsible agencies.
Speaking at the hearing, FERMA Managing Director, Chukwuemeka Agbasi, called for the establishment of a legally protected Road Fund Account to ensure timely and secure disbursement of funds, preventing diversion or delays by the Ministry of Finance or the Central Bank of Nigeria (CBN).
Agbasi also stressed the need for public awareness campaigns on the importance of the 5% user charge and called on the Federal Government to enforce compliance through legislation and executive action.
Meanwhile, Mukaila Oseni, Director of Operations at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said the FERMA Act lacks clarity on the remittance process, complicating implementation.
In response, the committee directed the NMDPRA to compute and submit the total amount owed to FERMA at its next sitting.
