…Says FERMA Gets Less Than 20%
Bello Goronyo, the minister of state for works, has disclosed that the Federal Roads Maintenance Agency (FERMA) requires approximately ₦880 billion annually to maintain Nigeria’s federal road network.
The minister said this on Monday when he appeared before the House of Representatives committee investigating the alleged non-remittance of the five percent user charge on petrol and diesel earmarked for federal road maintenance.
“Our roads are the lifelines of commerce and social integration. Their maintenance is not merely a policy directive but a national imperative,” Goronyo stated.
He explained that the five percent user charge, as stipulated in the FERMA Act, was designed to provide a sustainable mechanism for financing road maintenance and rehabilitation. However, he said chronic underfunding has left the agency unable to meet the demands of maintaining Nigeria’s extensive road infrastructure.
According to Goronyo, although FERMA requires ₦880 billion annually to maintain roads at optimal conditions, budgetary allocations have remained significantly below this threshold. The agency received ₦76.3 billion in 2023, ₦103.3 billion in 2024, and ₦168.9 billion in the 2025 appropriation.
“While these allocations have shown a gradual increase, they fall well short of what is required to sustain meaningful road maintenance,” the minister said. “This persistent funding shortfall has forced the agency to adopt a reactive rather than preventive maintenance strategy.”
He warned that the implications are evident in the worsening state of road infrastructure, rising repair costs, and disruptions to commuters and businesses across the country. Goronyo stressed that adequate and consistent funding is essential to implement a proactive maintenance model.
“The timely and diligent remittance of the five percent user charge is crucial,” he added. “This dedicated stream of funding presents a viable solution to bridge the financing gap and reduce dependency on annual budgetary provisions”, he added.
Tajudeen Abbas, Speaker of the House of Representatives, lamented the failure to comply with the FERMA Act’s provisions, noting that several attempts by the National Assembly to enforce compliance through oversight had been unsuccessful.
Abbas, who was represented by Kingsley Chinda, the Minority Leader, said the lack of implementation has adversely affected the operations of the agencies meant to benefit from the fund, and, by extension, Nigerians.
He announced that the House will carry out a “comprehensive investigation” to determine the scale of non-compliance, the value of unremitted funds, and the officials responsible. Abbas further urged the committee to recommend measures to prevent future violations and streamline the remittance process to ensure timely and transparent access to the funds by relevant agencies.
Chukwuemeka Agbasi, Director-General of FERMA, advocated for the establishment of a dedicated road fund to guarantee steady financing. He said such a fund, protected by statute, would ensure that allocations for road maintenance are not diverted or delayed by the Ministry of Finance or the Central Bank of Nigeria.
Mukaila Oseni, director of Operations at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), noted that the FERMA Act lacks clarity on the remittance procedure, a gap that has contributed to delays and non-compliance.
In response, the House committee directed NMDPRA to compile a full account of the funds due to FERMA and present the report at its next sitting.
