Reps begin probe of 5% user charge remittance to FERMA
The House of Representatives Ad-hoc Committee investigating the implementation and remittance of the 5% user charge on the pump price of petroleum products for road maintenance has inaugurated two sub-committees to address issues around the collections and disbursements of the funds. Under the Act establishing the Federal Roads Maintenance Agency (FERMA), 40 percent of the […]
The House of Representatives Ad-hoc Committee investigating the implementation and remittance of the 5% user charge on the pump price of petroleum products for road maintenance has inaugurated two sub-committees to address issues around the collections and disbursements of the funds.
Under the Act establishing the Federal Roads Maintenance Agency (FERMA), 40 percent of the user charge is meant to accrue to FERMA, while 60 percent is allocated to state road maintenance agencies.
However, the committee expressed concern that the charge has not been operationalised for years, despite being a crucial funding mechanism for road infrastructure across the country.
Chairman of the Ad-hoc Committee, Hon. Francis Waive, said the newly inaugurated sub-committees are tasked with a national responsibility to unravel why the five percent charge has remained dormant and chart a clear path forward.
- Opaque financial reporting in oil, gas sector fuels corruption – EFCC chair
- Plateau: ‘Killing of 70 vigilantes won’t deter us from fighting bandits’
According to him, the committees will examine the state of affairs both before and after the enactment of the Tax Act, and also identify areas where it conflicts with the FERMA Act.
They are also expected to develop workable frameworks for the entire process—spelling out how the funds should be collected, who should collect them, how they should be disbursed, and through what procedures.
Additionally, the committees are to recommend how personnel should be designated to manage the remittances, advise on the opening of dedicated bank accounts for proper accountability, and assign clear responsibilities to the various ministries, departments, and agencies involved in the chain.
They will also identify any policy gaps or overlaps and propose necessary legislative interventions to resolve them.
“This is a national assignment, not a personal business,” Waive told the stakeholders. “It is for our roads to be as good as roads elsewhere in the world. We can make a difference in this country, so I urge you to approach the task with seriousness and diligence. Work without bias, fear, or favour.”
Membership of the two committees was drawn from key stakeholders including FERMA, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Major Energy Marketers Association of Nigeria (MEMAN), the Independent Petroleum Marketers Association of Nigeria (IPMAN), and the National Union of Petroleum and Natural Gas Workers (NUPENG).
Also included are the Depot and Petroleum Marketers Association of Nigeria (DAPMAN), the National Association of Road Transport Owners (NARTO), petroleum refinery owners, and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN).