The House of Representatives has formed two committees to examine unremitted fuel user charges.
Lawmakers aim to fix conflicts in road maintenance funding and improve infrastructure across states.
The House of Representatives Ad-hoc Committee investigating the implementation and remittance of the five per cent user charge on petroleum pump prices has inaugurated two stakeholder sub-committees to tackle concerns over the collection and disbursement of the levy meant for road maintenance.
The five per cent user charge is outlined in the Act establishing the Federal Roads Maintenance Agency (FERMA). According to the Act, 40 per cent of the proceeds are allocated to FERMA, while the remaining 60 per cent is designated for state road maintenance agencies.
Speaking during the inauguration in Abuja on Tuesday, the Chairman of the Ad-hoc Committee, Hon. Francis Waive (APC, Delta), explained that the two panels will examine developments before and after the enactment of the relevant tax laws. They are also expected to identify potential areas of conflict between the tax provisions and the FERMA Act.
Waive noted that the user charge had not been effectively implemented for years, despite its significance in improving road infrastructure nationwide.
“The five per cent user charge has over the years not been operationalized,” he said, calling attention to the loss of potential funding for critical road repairs.
He outlined the terms of reference for the newly inaugurated committees, which include:
- Establishing clear modalities and procedures for the collection and disbursement of the charges;
- Recommending frameworks for the staffing and personnel needed to manage the process;
- Proposing the opening of designated accounts for the remittance of collections;
- Defining roles for relevant Ministries, Departments and Agencies (MDAs);
- Identifying conflicts between existing policies and recommending legislative realignment.
Waive urged committee members to approach their assignment with dedication and objectivity, stressing the national importance of the task.
“This is a national assignment, not a personal business. It is for our roads to be as good as other roads elsewhere. We can make a difference for our country. So take this seriously,” he said.
“I trust that you will work diligently, without bias, fear or favor,” he added.
The sub-committees are composed of representatives from key stakeholders in the petroleum and transport sectors. These include the Federal Roads Maintenance Agency (FERMA), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Major Energy Marketers Association of Nigeria (MEMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN), and the National Union of Petroleum and Natural Gas Workers (NUPENG).
Also represented are the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), National Association of Road Transport Owners (NARTO), petroleum refinery operators, and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).
The panels are expected to begin their work immediately and submit recommendations that may guide future legislative interventions on improving road infrastructure funding in the country.
