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 probe the collection and disbursement of the funds.
Under the Federal Roads Maintenance Agency (FERMA) Act, 40% of the user charge is statutorily allocated to FERMA, while 60% is designated for state road maintenance agencies. However, the committee expressed concern that the charge has not been operationalised for several years, undermining a key funding mechanism for road infrastructure across the country.
Chairman of the Ad-hoc Committee, Hon. Francis Waive, described the user charge as a critical national resource that has remained dormant, and said the new sub-committees have been given a “national responsibility” to uncover the reasons behind the inactivity.
Waive explained that the panels will review the situation before and after the enactment of the Tax Act, and also identify any areas of conflict between the Tax Act and the FERMA Act, with a view to recommending reforms for effective fund utilisation.
