Nigeria: Roads - Govt Needs N880bn Annually, Yet Ferma Starved of Funds - Works Minister

2 June 2025

The Federal Government requires a staggering ₦880 billion annually to keep Nigeria's extensive road network in good condition, yet persistent underfunding has crippled its maintenance efforts, the Minister of State for Works, Mr. Bello Goronyo, revealed on Monday.

Speaking during a public hearing held by the House of Representatives Ad-Hoc Committee investigating the implementation and remittance of the 5% user charge on petroleum products and diesel, the Minister painted a dire picture of the state of federal roads and the government's inability to sustainably fund their upkeep.

According to him, 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 the Federal Roads Maintenance Agency (FERMA). But 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: deplorable road conditions, rising maintenance costs, and severe disruptions for commuters and businesses across the country.

The Minister called for urgent action:

"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."

Goronyo emphasized that the solution lies in strict adherence to the FERMA Act, and leveraging the user charge to eliminate dependence on erratic budget appropriations.

Describing the Ad-Hoc Committee's investigation as vital, he pledged full cooperation from the Ministry and FERMA, saying the review was not just an oversight function but a chance to fix a systemic failure in Nigeria's infrastructure management.

House Speaker Tajudeen Abbas, represented by House Minority Leader Rep. 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.

Committee Chairman Rep. Francis Waive promised a thorough probe, vowing to expose all agencies complicit in the misuse or diversion of funds and ensure immediate recovery of any misappropriated amounts.

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