A possible increase in fuel and diesel prices is underway as the Federal Ministry of Works and the House of Representatives consider enforcing a 5% road user levy. The charge would be included directly in the pricing of petrol and diesel, a move aimed at generating funds to maintain Nigeria’s road network.
This plan was discussed during a recent hearing by the House of Representatives Ad-Hoc Committee in Abuja. The Minister of State for Works, Mohammed Goroyo, explained that the Nigeria Midstream and Downstream Petroleum Regulatory Authority must begin applying the charge immediately. According to Goroyo, Nigeria needs around N800 billion every year to maintain its federal roads, but actual funding has consistently fallen short. He noted that the Federal Roads Maintenance Agency (FERMA) only received N76.3 billion in 2023, N103.3 billion in 2024, and is projected to receive N168.9 billion in 2025. He warned that poor roads, higher repair costs, and delays for road users are clear signs that urgent funding is needed.
FERMA’s Managing Director, Chukwuemeka Abbasi, confirmed that despite a legal mandate, the 5% charge has never been applied. He said this levy, backed by the FERMA Act, was created to provide a steady funding source for repairs, but has remained unused due to ongoing financial constraints.
House Speaker Tajudeen Abbas also noted that the issue was raised earlier on March 19 during a House session. The House debated the lack of action on the road charge, which was established in the FERMA Amendment Act of 2007. Chairman of the Ad-Hoc Committee, Francis Waive, clarified that the aim isn’t to introduce a new charge or increase prices through new legislation. Instead, it’s about enforcing an existing law that has been ignored for years.
This conversation comes shortly after a small drop in fuel prices. The Nigerian National Petroleum Company Limited, along with Dangote Refinery and its partners, recently reduced petrol prices to N875 and N895 per litre in Lagos and Abuja, respectively. However, with the push to enforce this road levy, that relief may be short-lived.
