Tinubu pressing for 5% road user tax implementation to fund N800b yearly road maintenance bill
By Jeph Ajobaju, Chief Copy Editor
Federal Works Ministry and lawmakers are both pressing at the behest of President Bola Tinubu for the implementation of a 5 per cent road user tax to be factored into petrol and diesel prices, despite an inevitable impact of higher prices of goods and services across the board.
Works Minister of State Mohammed Goroyo told an investigative hearing of the House of Representatives Ad-Hoc Committee in Abuja that there is an urgent need for the Nigeria Midstream and Downstream Petroleum Regulatory Authority (MDPRA) to implement the road user charge collection to fund the deficit in the maintenance of federal roads.
The pressure from the Villa comes as Nigerians in the past couple of weeks saw cuts in the prices of petrol orchestrated by Dangote Refinery, with the Nigerian National Petroleum Company Limited (NNPC) retail outlets compelled to join in.
There are over 100 federal roads that are dilapidated across the country.
Critics say only a fraction of the $11 billion Tinubu devoted to construct a new Lagos-Calabar Coastal Highway could have been used to maintain the existing federal roads, to the benefit of a greater number of travellers.
Besides, Works Minister Dave Umahi announced last year that there would be 10 toll gates along the stretch of the Coastal Highway, each of which will attract a N3,000 fee from drivers, saying it would help recoup the $11 billion cost over time.
In that case, it will cost N30,000 for anyone to drive the entire length of the highway on a one-way trip or N60,000 on a return journey, which means the project will not provide relief for citizens and rather add to their tax burdens.
Goroyo argued before lawmakers that Nigeria needs N800 billion yearly for road maintenance but the budget allocated to the Federal Roads Maintenance Agency (FERMA) falls short.
“FERMA requires an estimated N880 billion annually for optimal road conditions. Budgetary allocations have consistently fallen short – N76.3bn in 2023 and N103.3bn in 2024, while N168.9bn was budgeted for 2025,” he explained.
“The consequences of this are glaring – deteriorating road conditions, increased repair costs, and prolonged disruptions for commuters and businesses alike.
“Thus, the diligent implementation and timely remittance of the five per cent user charge are paramount.”
FERMA Managing Director Chukwuemeka Abbasi disclosed that the template for deducting the road user charge from the prices of petrol and diesel was never implemented by the NMDPRA.
“The five percent user charge, as enshrined in the FERMA Act, was designed to serve as a sustainable funding mechanism for road maintenance and rehabilitation.
“However, for years, FERMA has grappled with severe funding inadequacies, hampering its ability to maintain our vast road network effectively,” he said.
House Speaker Tajudeen Abbas recounted that the Chamber on March 19 considered a motion at plenary on the non-implementation of remittance of the five per cent road user charge on petroleum products meant for road maintenance under the FERMA Amendment Act, 2007.
Ad-Hoc Committee Chairman Francis Waive, who also House Committee on Rules and Business Chairman, explained that the 5 per cent road user charge is not an attempt to raise the prices of petroleum products or to amend the law since it has been part of the law since 2007.
He said the purpose of the investigation is to address anomalies through disobedience of existing laws, insisting that the House will ensure that every law passed is complied with by individuals and agencies of government.
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