The Federal Government of Nigeria has identified a significant funding shortfall in maintaining the nation’s extensive road network. According to the Minister of State for Works, Mohammed Goroyo, an estimated ₦880 billion is required annually to keep federal roads in optimal condition.
However, budgetary allocations have consistently fallen short, with ₦76.3 billion allocated in 2023, ₦103.3 billion in 2024, and ₦168.9 billion earmarked for 2025.
This underfunding has compelled the Federal Roads Maintenance Agency (FERMA) to adopt a reactive maintenance approach, leading to deteriorating road conditions, increased repair costs, and prolonged disruptions for commuters and businesses.
A key issue contributing to this funding gap is the non-implementation of the five percent user charge on petrol and diesel, as stipulated in the FERMA Act. This charge was intended to provide a sustainable funding mechanism for road maintenance. However, the deduction and remittance of this charge have not been enforced by the relevant regulatory authorities, including the now-defunct Petroleum Products Pricing Regulatory Agency and its successor, the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
In response, the House of Representatives has initiated an investigative hearing to examine the non-remittance of the user charge and its impact on road maintenance. The Speaker of the House, Tajudeen Abbas, emphasized the need for accountability and compliance with existing laws to ensure that allocated funds are utilized effectively for infrastructure development.
The government is now considering measures to enforce the implementation of the user charge and establish a dedicated road fund to ensure consistent and adequate financing for road maintenance across the country.
