Reps Demand Implementation of 5% Petroleum Users’ Charge

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The House of Representatives Ad hoc Committee has called for the full implementation of the 5% users’ charge on the pump price of petrol and diesel.

Chairman of the committee, Hon. Francis Waive, called for the move during an investigative public hearing on the implementation and remittance of the 5% users’ charge on the pump price of petrol and diesel.

Waive, during the hearing, however, said with the help of stakeholders, the committee would establish the true status of the users’ charge and ensure accountability, compliance with the statutory obligations and ultimately that Nigeria and Nigerian roads would benefit from the funding mechanism clearly provided for by law.

It would be recalled that the FERMA Act, 2007 provides for a 5% users’ charge on the pump price of petrol, diesel and of which 40% will accrue to the Federal Roads Maintenance Agency (FERMA) and 60% to be utilised by the established State Roads Maintenance Agencies.

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A statement from FERMA’s Director (Information/PR), Maryam M. Sanusi, said the representative of the Chief Executive Officer of Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMPDRA), Engr Farouk Ahmed, in his submission affirmed the non-implementation of the 5% users’ charge due to the unavailability of modalities for the collection of the allocated fund.

He stated that the commission is ready to implement the enacted law once the modalities are put in place.

The Managing Director/CEO, FERMA, Dr Emeka Agbasi, in his submission, raised the justification for the remittance of the 5% user’s charge to FERMA, stating that the agency has been underfunded with only the annual budgetary allocations which provide 20% of FERMA’s financial requirement.

He added that users’ charge is a common and effective mechanism globally for funding of road infrastructure maintenance.

To fully realise the 5% user’s charge, Dr Agbasi urged the committee to include clear and mandatory provisions for the collection, administration, and auditing of the 5% users’ charge, create a FERMA Road Fund Account, and full enforcement of the existing FERMA Amendment Act.