FERMA Needs N880bn Yearly For Road Maintenance — Minister

Minister of State for Works, Bello Goronyo on Monday disclosed that the Federal Roads Maintenance Agency (FERMA) needs an estimated N880 billion every year to maintain roads optimally across the nation.

The minister disclosed this during a public hearing by the House of Representatives Ad-Hoc Committee investigating the implementation and remittance of the 5% user charge on petroleum products and diesel.

Goronyo said, the 5% user charge, established under the FERMA Act of 2007 was meant to provide a reliable, dedicated stream of funding for road maintenance through FERMA.

He observed that instead of bolstering the agency, years of financial neglect and weak enforcement of the Act have rendered FERMA reactive, overstretched, and ineffective.

“FERMA needs an estimated ₦880 billion annually to maintain roads optimally. However, budget allocations have been grossly insufficient: ₦76.3 billion in 2023, ₦103.3 billion in 2024, and ₦168.9 billion proposed for 2025—all falling significantly short,” Goronyo stated.

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He warned that the consequences of chronic underfunding are becoming increasingly visible with deplorable road conditions, rising maintenance costs, and severe disruptions for commuters and businesses across the country.

“We must shift from reactive patchwork fixes to a proactive, well-funded road maintenance strategy. The timely and full remittance of the 5% user charge is critical to achieving this goal,” he said.

In his remarks, Speaker Abbas Tajudeen who was represented by the Minority Leader, Hon. Kingsley Chinda, charged the committee to uncover the depth of the abuse and neglect of the FERMA Act over the years.

“This Committee must determine how much has accrued from the 5% user charge since the law’s inception, what has been remitted to FERMA, and what is still outstanding. Nigerians are watching closely,” Abbas said.

The committee’s chairman Hon. Francis Waive assured of a thorough probe as he vowed to expose all agencies complicit in the misuse or diversion of funds and ensure immediate recovery of any misappropriated amounts.