Lawmakers Pledge to Enforce New 5% Levy on Petroleum Products

The Federal Roads Maintenance Agency (FERMA) Act of 2007 stipulates a 5% user charge on gasoline products and diesel. The House of Representatives has reaffirmed its commitment to working toward its full implementation.

The House emphasized that the 10th Assembly’s efforts to meet Nigeria’s urgent road development needs continue to prioritize enforcing the provision.

The ad-hoc committee’s chairman, Francis Waive, explained during a technical meeting called by the committee looking into the collection and remittance of a five percent user charge that the purpose of the user charge is to ensure sustainable road maintenance across the country for the benefit of all Nigerians, including the petroleum industry, rather than to raise the price of petroleum products at the pump.

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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), the Federal Inland Revenue Service (FIRS), FERMA, and other important stakeholders agreed to form two subcommittees in order to expedite the process.

Waive urged the members of the subcommittee to provide realistic, actionable suggestions that go beyond formalities, emphasizing that tangible results are essential for both the welfare of Nigerian road users and the country’s development.

The subcommittees will be sworn in on Tuesday, July 8, 2025, according to a release.

“The House of Representatives is steadfast in its efforts to guarantee accountability and transparency in the collection and application of the five percent user fee, with the ultimate objective of repairing and maintaining roads throughout the nation,” Waive stated.

The management team of the Federal Roads Maintenance Agency (FERMA) as well as other pertinent stakeholders from the road and petroleum industries attended the conference.