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 stakeholders’ committees to resolve issues surrounding its collection and disbursement.

The charge, provided for in the Act establishing the Federal Roads Maintenance Agency (FERMA), stipulates that 40% of proceeds go to FERMA and 60% to state road maintenance agencies. Despite being law, the charge has remained unimplemented for years.

Chairman of the Ad Hoc Committee, Hon. Francis Waive, said the two committees would review the situation before and after the Tax Act, address conflicts with the FERMA Act, and recommend measures to operationalize the fund. 

Their terms of reference include specifying procedures for collection and disbursement, recommending personnel modalities, establishing beneficiary accounts, defining the roles of relevant MDAs, and identifying policy gaps for legislative action.