Reps raise panels to probe non-remittance of 5% fuel levy for road repairs

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 stakeholder committees to investigate issues surrounding the collection and disbursement of the levy.

The charge, as stipulated in the Act establishing the Federal Roads Maintenance Agency (FERMA). Section 14(1)(h) mandates that 5% of the pump price of petrol and diesel be allocated to FERMA and State Road Maintenance Agencies in the ratio of 40:60.

Francis Waive, chairman of the ad-hoc committee said the panels would review both the pre- and post-Tax Act regimes and identify areas of conflict with the FERMA Act. He noted that the 5% user charge had “not been operationalised” over the years, despite its legal backing.

Waive outlined the committees’ terms of reference, which include developing clear modalities and procedures for the collection and disbursement of the levy, recommending guidelines for personnel deployment, opening of dedicated beneficiary accounts, and defining the roles of relevant ministries, departments and agencies (MDAs). The committees are also expected to identify policy gaps and recommend legislative amendments where necessary.

“This is a national assignment, not a personal business. It is about ensuring our roads are as good as those in other countries. We can make a difference for our nation, so I urge you to take this seriously,” Waive said, as he formally inaugurated the committees.

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He further appealed to members to carry out their duties “diligently, without bias, fear or favour”.

The committees comprise representatives from FERMA, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Major Energy Marketers Association of Nigeria (MEMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN), and the National Union of Petroleum and Natural Gas Workers (NUPENG).

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Other members include the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), National Association of Road Transport Owners (NARTO), petroleum refinery operators, and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).