FERMA: Reps lament, angry over non-remitance of 5% petroleum price deduction

The House of Representatives, has expressed worries over violation of Section 14(1)(h) of the Federal Road Maintenance Agency (FERMA) Act 2007, by not remitting five percent of pump prices of petroleum products to road maintenance agencies as specified.

The Act had prividec that five pefcent of the pump price of petrol and diesel shall be allocated to FERMA and state roads maintenance agenciss in a 40% and 60% ratio, respectively.

Speaker of the Hiuse, Tajudeen Abbas made the concerns known in his remarks during the inauguration of the Ad hoc committee given the mandate to investigate the implementation and remittance of the five charge for road maintenance under the FERMA Act of 2007, through a resolution on March 19, 2025.

“It is important to recall that Section 14(1)(h) of the FERMA Amendment Act 2007 stipulates that 5% of the pump price of petrol and diesel should be allocated to FERMA and the State Maintenance Agencies in the proportion of 40% and 60%, respectively.

“However, over the years, this section of the Act has not been complied with, despite various attempts by the National Assembly through oversight activities to compel compliance”, he said.

Chairman of the committee, Francis Waivein his remarks assured that the committee would engage all relevant stakeholders, including government agencies, independent auditors, civil society organizations, and industry experts. “We will demand full disclosure and accountability from the relevant institutions and, where necessary, recommend legislative and administrative actions”, he said.