Reps probe non-remittance of 5% user charge for road maintenance

The House of Representatives, on Tuesday, commenced an investigation into the alleged non-remittance of the five per cent user charge on petrol and diesel, which is meant for road maintenance under the Federal Roads Maintenance Agency (FERMA) (Amendment) Act, 2007.

The lawmakers lamented that since the enactment of the provision, the now-defunct Petroleum Products Pricing Regulatory Agency (PPPRA) had failed to remit the required funds to FERMA.

This follows the adoption of the motion moved by the member representing Sagbama/Ekeremor Federal Constituency of Bayelsa State, Frederick Agbedi, during the plenary session presided over by Speaker Abbas Tajudeen.

Agbedi recalled that in 2016, the Senate Committee on Works directed PPPRA to remit ₦634 billion to FERMA, representing unremitted funds between 2007 and 2015.

Agbedi, however, said there is no evidence that these funds have been fully accounted for or disbursed.

The lawmaker further recalled that in 2019, the Senate mandated its Committees on Petroleum Downstream and National Planning to investigate PPPRA’s failure to remit the funds, but no significant progress has been reported.

He noted that the non-remittance had severely limited FERMA’s capacity to maintain and rehabilitate federal roads, leading to the deterioration of road infrastructure, increased accidents, higher vehicle maintenance costs, and economic losses.

Agbedi recalled that the defunct PPPRA justified its non-compliance by arguing that implementing the five per cent user charge would increase fuel prices despite the clear legal requirement for such remittances.

According to him, as of January 2025, there is no publicly available evidence from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which took over PPPRA functions, indicating that the five per cent user charge has been enforced or that the required funds have been remitted.

Adopting the motion, the House resolved to set up an Ad-hoc Committee to conduct a comprehensive investigation into the status of the five per cent user charge, including the outstanding amount owed to FERMA and the officials responsible for its implementation, and report within four weeks for further legislative action.