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Times Reporters > Business > Oil & Gas > HoR Probes Non-Remittance of 5% Petrol Levy for Road Maintenance
NewsOil & Gas

HoR Probes Non-Remittance of 5% Petrol Levy for Road Maintenance

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By Publisher Published March 27, 2025
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The House of Representatives has formed a new ad-hoc committee tasked with investigating the remittance, use, and accountability of the five percent user charge on petrol, intended for road maintenance across Nigeria.

At the committee’s inauguration on Wednesday at the National Assembly, Hon. Waive Ejiroghene Francis, the chairman, stressed the critical importance of the probe. He cited years of non-compliance, lack of transparency, and claims of mismanagement of funds as key reasons for the investigation.

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“The formation of this Committee is both timely and necessary. Over the years, the National Assembly has passed several legislative measures to enforce compliance with the laws governing this charge, but unfortunately, these efforts have been consistently ignored,” Waive noted.

He expressed concerns about the deteriorating state of road infrastructure, despite the existence of the user charge, which was meant to provide a steady stream of funding for road repairs and maintenance.

Waive assured that the committee would demand full accountability for the funds.

“This investigation is not intended to target anyone unjustly but is a constitutional obligation entrusted to the House of Representatives. Section 88 of the 1999 Constitution empowers us to investigate public funds and uncover any corruption, inefficiency, or waste,” he added.

As part of its inquiry, the committee will consult with relevant government bodies, independent auditors, civil society groups, and experts to ensure full transparency and accountability. If necessary, legislative and administrative reforms will be proposed to address any issues uncovered.

Waive reaffirmed the committee’s commitment to thorough and fair work in the best interests of the Nigerian people and thanked the Speaker of the House for his support in establishing the committee.

Speaker of the House of Representatives, Rt. Hon. Abbas Tajudeen, echoed concerns about the continued failure to comply with the statutory remittance of the user charge, which has hindered road maintenance efforts across the country.

He pointed out that the committee was set up after a motion was adopted on March 19, which exposed government agencies’ inability to enforce the law and remit the funds as required.

“According to Section 14(1)(h) of the FERMA Amendment Act of 2007, five percent of the pump price of petrol and diesel should be allocated to FERMA and State Maintenance Agencies in the ratio of 40% and 60%, respectively. Yet, despite repeated efforts by the National Assembly, compliance has remained inadequate,” Tajudeen explained.

The Speaker emphasized that the investigation would aim to determine the scope of the violation, identify those responsible, and assess the amount of unremitted funds since the law’s enactment.

He urged the committee to conduct a thorough, impartial, and fair inquiry, free from political influences.

“This investigation should lead to strong recommendations on preventing future violations and improving the remittance process, ensuring that funds reach the relevant government agencies,” Tajudeen said.

He assured the committee of the full support of the House leadership and expressed confidence in their ability to produce a comprehensive report that would inform future legislative actions.

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Publisher March 27, 2025
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