The Federal Government has disclosed that approximately ₦880 billion is required annually to maintain Nigeria’s extensive federal road network. However, current budgetary allocations fall significantly short of this need, prompting concerns over deteriorating infrastructure and the necessity for alternative funding mechanisms.
Minister of State for Works, Bello Goronyo, highlighted the funding gap during a recent address, noting that allocations have been insufficient to meet maintenance demands. In 2023, FERMA received ₦76.3 billion, which increased to ₦103.3 billion in 2024, and ₦168.9 billion has been budgeted for 2025. Despite these increments, the figures remain well below the estimated requirement for optimal road conditions.
The shortfall has compelled the Federal Road Maintenance Agency (FERMA) to adopt a reactive approach to road repairs, addressing issues as they arise rather than implementing preventive maintenance strategies. This reactive stance has led to worsening road conditions, increased repair costs, and prolonged disruptions for commuters and businesses.
A significant factor contributing to the funding inadequacy is the non-implementation of the 5% user charge on petrol and diesel, as stipulated in the FERMA Amendment Act of 2007. This levy was designed to provide a sustainable funding source for road maintenance, allocating 40% to FERMA and 60% to State Roads Maintenance Agencies. However, the defunct Petroleum Products Pricing Regulatory Agency (PPPRA) failed to remit these funds, and its successor, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has yet to enforce the charge.
In response, the House of Representatives has inaugurated an ad-hoc committee to investigate the non-remittance and utilization of the 5% user charge. The committee aims to determine the extent of the violation, quantify unremitted funds, and identify those responsible for the non-implementation. Speaker of the House, Tajudeen Abbas, emphasized the importance of this investigation in ensuring compliance with existing laws and securing necessary funds for infrastructure maintenance.
As Nigeria grapples with the challenges of maintaining its vast road network, the government acknowledges the need for alternative funding sources beyond annual budgets. Minister Goronyo has advocated for exploring new financial models to address the growing infrastructure deficit, thereby ensuring the sustainability of road maintenance efforts nationwide.
