The cost of premium motor spirit and automotive gas oil may rise as the Federal Ministry of Works and the House of Representatives advocate for the inclusion and remittance of a 5 per cent road user charge in fuel and diesel pricing.
Naija News reports that this information was revealed during an investigative hearing held by the House of Representatives Ad-Hoc Committee on Monday in Abuja.
As stated by the Minister of State for Works, Mohammed Goroyo, there is an immediate necessity for the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to enforce the collection of the 5 per cent road user charge to help mitigate the funding shortfall for the maintenance of federal roads in the country.
He emphasised that Nigeria requires ₦800 billion each year for road upkeep, yet the budget designated for the Federal Roads Maintenance Agency has been inadequate.
“FERMA requires an estimated N880bn annually for optimal road conditions. Budgetary allocations have consistently fallen short—₦76.3bn in 2023 and ₦103.3bn in 2024, while ₦168.9bn was budgeted for 2025.
“The consequences of this are glaring—deteriorating road conditions, increased repair costs, and prolonged disruptions for commuters and businesses alike.
“Thus, the diligent implementation and timely remittance of the five per cent user charge are paramount,” he said.
On his part, the Managing Director of the Federal Road Maintenance Agency (NMDPRA), Chukwuemeka Abbasi, revealed that the framework for deducting the road user charge from petrol and diesel prices was never put into effect by NMDPRA.
He elaborated that “the five per cent user charge, as stipulated in the FERMA Act, was intended to function as a sustainable funding source for road maintenance and rehabilitation.
Nevertheless, for many years, FERMA has faced significant funding shortfalls, which have hindered its capacity to maintain our extensive road network effectively.”
Earlier, the Speaker of the House of Representatives, Tajudeen Abbas, recalled that on 19th March, the House had deliberated on a motion during plenary that highlighted the non-implementation of the remittance of the five per cent user charge on petroleum products designated for road maintenance under the FERMA Amendment Act of 2007.
The chairman of the committee and also the chairman of the House Committee on Rules and Business, Francis Waive, clarified that the five per cent road user charge is not an initiative to raise the prices of petroleum products or to amend the law, as it has been a part of the legislation since 2007.
He emphasised that the aim of the investigation was to rectify the irregularities arising from non-compliance with existing laws, adding that the House will ensure that every law enacted by the parliament is adhered to by both individuals and government agencies.
This development comes as Nigerians have recently observed a decrease in petrol prices.
Recently, retail outlets of the Nigerian National Petroleum Company Limited, along with Dangote Refinery and its partners, have reduced their retail prices of PMS to ₦875 and ₦895 per litre in Lagos and Abuja.
The post Diesel, Fuel Price Hike Looms As FG, Reps Mulls Implementation Of 5% Road User Charge appeared first on Naija News.