Reps Launch Working Groups on Road Maintenance Levy Distribution

By Gloria Ikibah

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The House of Representatives has set up two stakeholder working groups to resolve long-standing concerns related to the collection and allocation of funds derived from the federally mandated user levy on road usage.

The levy, as outlined in the legislation that created the Federal Roads Maintenance Agency (FERMA), prescribes a revenue-sharing structure where 40% is allocated to FERMA, while the remaining 60% is designated for use by state-level road maintenance bodies.

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The newly formed committees are expected to engage relevant agencies and actors to ensure clarity, fairness, and efficiency in how the funds are managed and applied across different levels of government.

Chairman of the Ad-hoc committee investigating the implementation and remittance of the five percent user charge on pump price of petroleum products for road maintenance, Rep. Francis Waive said the committees are expected to look into the pre-Tax Act, and the post-Tax Act situations, and address areas of conflicts with the FERMA Act.

The Chairman decried that the five percent user charge had over the years, “not been operationalised.”

He issued the terms of reference to Include; “specifying modalities, procedures and processes for collection and disbursement, recommending specific modalities for personnel, opening of beneficiary bank account for remittance of collections, identifying and specifying roles to be played by specific relevant MDAs, and identifying gaps and conflicts of policies, and realignment for further legislative actions”.

Inaugurating the committees he said, “This is a national assignment, not a personal business. It is for our roads to be good as elsewhere. We can make the difference for our  country, so please, take this serious.

“I want to appeal, and trust that you’re going to work diligently without bias, without fear or favour”.

Membership of the committees were drawn from FERMA, Nigeria Petroleum Midstream and Downstream Regulatory Authority (NPMDPRA), Major Energy Marketers Association of Nigeria (MEMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN), and National Union of Petroleum and Natural Gas Workers (NUPENG).

Others include Depot and Petroleum Marketers Association of Nigeria (DAPMAN), National Association of Road Transport Owners (NARTO), Petroleum refinery owners, and Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN).

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