The Nigerian Federal Government estimates N880bn yearly for road maintenance, but faces a severe funding gap as the 5% user charge on fuel, meant for FERMA, has never been implemented
Nigeria’s federal road network requires an estimated ₦880 billion annually for optimal maintenance, a figure far exceeding current budgetary allocations.
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This critical funding shortfall has been highlighted by the Minister of State for Works, Mohammed Goroyo, and the Managing Director of the Federal Road Maintenance Agency (FERMA), Chukwuemeka Abbasi.
Both officials spoke on Monday at an investigative hearing of the House of Representatives Ad-Hoc Committee, which is probing the implementation and remittances of the five per cent user charge designated for road maintenance under the FERMA Act.
Minister Goroyo revealed the alarming disparity between need and provision: “FERMA requires an estimated N880bn annually for optimal road conditions. Budgetary allocations have consistently fallen short—N76.3bn in 2023, N103.3bn in 2024, while N168.9bn was budgeted for 2025.”
He stressed that despite gradual increases, these figures “remain far below the necessary threshold for sustainable road maintenance.”
This persistent funding gap, he explained, has forced FERMA into a “reactive mode of maintenance rather than a preventive approach,” leading to deteriorating road conditions, increased repair costs, and prolonged disruptions for commuters and businesses.
Goroyo emphasized that a proactive strategy, backed by adequate funding, is essential for smooth, safe, and efficient roadways nationwide.
He reiterated that the diligent implementation and timely remittance of the five per cent user charge are “paramount” as a viable solution to bridge the financial gap and provide consistent resources without over-reliance on annual budget appropriations.
FERMA requires an estimated N880bn annually for optimal road conditions. Budgetary allocations have consistently fallen short… This persistent funding gap has forced FERMA into a reactive mode of maintenance rather than a preventive approach.
On his part, FERMA boss, Chukwuemeka Abbasi, made a significant disclosure: the template for deducting the road user charge from the prices of petrol and diesel was never implemented by the defunct Petroleum Product Pricing Regulatory Authority (PPPRA), now the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
This means the intended funding mechanism, enshrined in the FERMA Act since 2007, has effectively been dormant.
Abbasi noted that under President Bola Tinubu’s Renewed Hope Agenda, the Federal Ministry of Works is dedicated to delivering world-class infrastructure.
He asserted that roads are the “lifelines of commerce and social integration, and their maintenance is not merely a policy directive but a national imperative.”
He added that FERMA has “grappled with severe funding inadequacies, hampering its ability to maintain our vast road network effectively.”
Speaker of the House of Representatives, Tajudeen Abbas, who declared the event open, recalled that a motion on March 19 had revealed the non-implementation of the 5% user charge remittance.
He affirmed the House’s constitutional obligation to conduct a comprehensive investigation to determine the extent of the law’s violation, the amount unremitted, and those responsible.
The Chairman of the Committee, Francis Waive, clarified that the user charge is not a new tax or an attempt to increase fuel prices, as it has been part of the law since 2007.
He stated that the investigation’s purpose is to address anomalies arising from disobedience to existing laws and ensure compliance with legislation passed by the parliament.
