By Joy Odor 

The House of Representatives has resolved to set up an Ad-hoc Committee to investigate the non-implementation and remittance of the 5% user charge on petroleum products meant for road maintenance under the Federal Roads Maintenance Agency (FERMA) (Amendment) Act, 2007.

The resolution followed adoption of a motion moved by Rep. Frederick Yeitiemone Agbedi, who expressed concern over the failure of relevant agencies to enforce the statutory charge and remit the funds to FERMA.

The Lawmaker affirmed that since the enactment of this provision, the now-defunct Petroleum Products Pricing Regulatory Agency (PPPRA) reportedly failed to remit the funds despite repeated legislative directives.

He noted that the continued non-remittance of these funds has severely hampered FERMA’s ability to maintain federal roads, leading to widespread infrastructure decay, increased accidents, and higher vehicle maintenance costs for Nigerians.

Rep Agbedi informed that Section 14(1)(h) of the act stipulates that 5% of the pump price of petrol and diesel is to be allocated for the maintenance of federal and state roads, with FERMA receiving 40% and State Roads Maintenance Agencies getting 60%.

He recalled that in 2016, the Senate Committee on Works ordered PPPRA to remit N634 billion to FERMA for unremitted funds between 2007 and 2015.

“In 2019, the Senate directed its Committees on Petroleum Downstream and National Planning to investigate the agency’s failure to remit the funds, but no significant progress has been recorded.

“The defunct PPPRA had justified its non-compliance by claiming that implementing the 5% user charge would increase fuel prices, despite the clear legal mandate for such remittances.

“Concern that, as of January 2025, there is no publicly available evidence that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which replaced PPPRA, has enforced the charge or remitted the funds” he noted.

After deliberations on the motion, the House resolved to set up an Ad-hoc Committee to conduct a comprehensive investigation into the status of the 5% user charge, determine the outstanding amount owed to FERMA, and identify officials responsible for its implementation.

The Committee is expected to report its findings within four weeks for further legislative action.