The Federal Government needs approximately ₦880 billion each year to maintain the federal road network nationwide.

The Minister of State for Works, Mohammed Goroyo, made this known on Monday during an investigative hearing held by the House of Representatives Ad-Hoc Committee probing the implementation and remittance of the five per cent user charge for road maintenance, as provided under the Federal Road Maintenance Agency (FERMA) Amendment Act, 2007.

Goroyo said, despite incremental increases in budgetary allocations—₦76.3 billion in 2023, ₦103.3 billion in 2024, and ₦168.9 billion projected for 2025—funding remains “far below the necessary threshold” for sustainable road maintenance.

Goroyo stated, “FERMA requires an estimated ₦880bn annually for optimal road conditions. Budgetary allocations have consistently fallen short—₦76.3bn in 2023, ₦103.3bn in 2024, while ₦168.9bn was budgeted for 2025.
“Though these figures show gradual increases, they remain far below the necessary threshold for sustainable road maintenance. 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.”

He then called for the full implementation and remittance of the five per cent user charge on petroleum products, as mandated by the FERMA Amendment Act, 2007, describing it as a critical funding mechanism that could reduce reliance on annual appropriations.

“Thus, the diligent implementation and timely remittance of the five per cent 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.”

He added that inadequate funding has been the major problem of the country’s road infrastructure, noting that even though the user charge was supposed to address the gap, the agency and the Ministry have not been able to access it.

Also speaking at the hearing, FERMA Managing Director, Chukwuemeka Agbasi, stated that “our roads are the lifelines of commerce and social integration, and their maintenance is not merely a policy directive but a national imperative.

The five per cent user charge, as enshrined in the FERMA Act, was designed to serve as a sustainable funding mechanism for road maintenance and rehabilitation. However, for years, FERMA has grappled with severe funding inadequacies, hampering its ability to maintain our vast road network effectively.”