Fuel prices in Nigeria may increase as the Ministry of Works and House of Representatives push for the long-unenforced 5% road user charge to be included in petrol and diesel costs, aiming to fund critical road maintenance
[dropcap]N[/dropcap]igerians may soon see an increase in the pump prices of premium motor spirit (petrol) and automotive gas oil (diesel) as the Federal Ministry of Works and the House of Representatives advocate for the immediate inclusion and remittance of a 5 per cent road user charge into fuel and diesel pricing.
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This significant development was unveiled during an investigative hearing held by the House of Representatives Ad-Hoc Committee on Monday in Abuja.
Mohammed Goroyo, the Minister of State for Works, emphasized the urgent need for the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to enforce the collection of this 5 per cent charge.
This, he stated, is crucial to help mitigate the severe funding shortfall currently plaguing the maintenance of federal roads across the country.
Goroyo highlighted that Nigeria requires an estimated ₦880 billion annually for optimal road upkeep.
However, budgetary allocations for the Federal Roads Maintenance Agency (FERMA) have consistently fallen far short of this crucial threshold. He cited figures: “₦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,” Goroyo asserted, stressing that “the diligent implementation and timely remittance of the five per cent user charge are paramount.”
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.
Adding to the revelation, Chukwuemeka Abbasi, the Managing Director of FERMA, disclosed that the framework for deducting this statutory road user charge from petrol and diesel prices was never actually put into effect by the NMDPRA (or its predecessor, the Petroleum Product Pricing Regulatory Authority – PPPRA).
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.”
The Speaker of the House of Representatives, Tajudeen Abbas, recalled that the House had, on March 19, deliberated on a motion highlighting the non-implementation of the remittance of this 5 per cent user charge, which is mandated by the FERMA Amendment Act of 2007.
Francis Waive, the committee chairman and also the chairman of the House Committee on Rules and Business, clarified that the push for the 5 per cent road user charge is not an attempt to introduce a new tax or amend the law, as it has been a legal provision since 2007.
He emphasized that the investigation’s primary aim is to rectify irregularities stemming from non-compliance with existing laws, assuring that the House will ensure adherence to every law enacted by the parliament.
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This development comes as Nigerians have recently experienced a marginal decrease in petrol prices, with retail outlets of the Nigerian National Petroleum Company Limited, along with Dangote Refinery and its partners, recently reducing their retail prices of PMS to around ₦875 and ₦895 per litre in Lagos and Abuja respectively.
