The House of Representatives has inaugurated the Pre-Tax Act and Post-Tax Act Committees to formalise the implementation of the 5% user charge on petroleum products and diesel, as stipulated under the Federal Roads Maintenance Agency (FERMA) Act, 2007.
The two subcommittees were inaugurated on Tuesday, 8th July 2025, by the Ad-hoc Committee on the Implementation and Remittance of the 5% User’s Charge for Road Maintenance.
Speaking at the inauguration, the Chairman of the Ad-hoc Committee, Hon. Francis Waive, outlined the Terms of Reference for the committees. He stated that they are tasked with specifying modalities, procedures, and processes for the collection, remittance, and disbursement of the 5% user charge under the FERMA Act. They are also to recommend specific modalities and personnel for the opening and operation of beneficiary accounts, identify and assign roles for relevant MDAs, and highlight any gaps or conflicts that require legislative action or policy realignment.
Hon. Waive charged committee members to carry out their assignment diligently, reminding them that their service is a national responsibility for the benefit of road users and Nigerians at large.
The Pre-Tax Act Committee will be chaired by Engr. Bernard Olisa from FERMA, with Barr. Erinle Stephen (FERMA) and Adedayo Oyinlola (NMDPRA) as members.
The Post-Tax Act Committee will be chaired by the Managing Director/CEO of FERMA, Engr. Chukwuemeka Agbasi, with Barr. Clark Richard (FERMA), Obinna Njokwu (NMDPRA), and Babatunde Olaniyi (Nigeria Revenue Service, NRS) as members.
Engr. Agbasi assured the Ad-hoc Committee of the commitment of the subcommittees to deliver on their mandate for the socio-economic development of Nigeria.
Other members of the committees include critical stakeholders such as the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), the Nigerian Association of Road Transport Owners (NARTO), and others. He emphasised that the committees should rely on existing legislation, particularly the FERMA Act, 2007.
He charged the committees to submit achievable and realistic recommendations by Monday, 14th July 2025.
Hon. Waive reaffirmed that the implementation of the 5% User’s charge under the FERMA Act is not intended to increase the pump price of petroleum products, but rather to ensure that Nigerian roads remain motorable and to provide hazard insurance for stakeholders in the petroleum industry, emphasizing that all stakeholders will benefit from the 5% users charge.
Signed
Maryam M. Sanusi, fnipr.
Director, Information and Public Relations.
FERMA.
