Petrol and Diesel Prices May Rise as FG Plans 5% Road User Charge: What It Means for Nigerians
Federal Ministry of Works, House of Reps Push for Fuel Price Adjustment to Fund Road Repairs
Nigerians may soon face an increase in the prices of petrol (Premium Motor Spirit) and diesel (Automotive Gas Oil) as the Federal Government considers adding a 5% road user charge to the cost of these fuels. This move, which is gaining traction at both the Federal Ministry of Works and the House of Representatives, is intended to raise funds for the repair and maintenance of Nigeria’s deteriorating road infrastructure.
The news emerged during an investigative hearing held by an Ad-Hoc Committee of the House of Representatives in Abuja, where the Minister of State for Works, Mohammed Goroyo, presented a detailed explanation of the current crisis facing Nigeria’s federal road network.
Why the Government Wants to Increase Fuel and Diesel Prices
During the hearing, Minister Goroyo revealed that the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) must urgently begin enforcing the five percent road user charge as part of the pump price of fuel and diesel. According to him, this step is critical to addressing the severe funding gap required to maintain Nigeria’s extensive and heavily used federal roads.
He noted that the Federal Roads Maintenance Agency (FERMA) needs close to ₦880 billion every year to keep roads across the country in good condition. However, current budget allocations to FERMA fall far below what is needed.
“FERMA requires an estimated ₦880 billion annually for optimal road conditions. Budgetary allocations have consistently fallen short—₦76.3 billion in 2023, ₦103.3 billion in 2024, and ₦168.9 billion in 2025,” Goroyo said.
He went further to explain the direct consequences of these shortfalls:
“The consequences of this are glaring—deteriorating road conditions, increased repair costs, and prolonged disruptions for commuters and businesses alike. Thus, the diligent implementation and timely remittance of the five percent user charge are paramount.”
FERMA Boss: Road User Charge Not Being Implemented as Intended
At the same hearing, Chukwuemeka Abbasi, the Managing Director of FERMA, confirmed that although the road user charge is a legal requirement, it has not yet been enforced. He stressed that the charge was specifically introduced in the FERMA Amendment Act to provide a sustainable and reliable funding model for maintaining and rehabilitating roads across Nigeria.
Unfortunately, because the charge has not been implemented, the country continues to face funding shortages, leaving most federal roads in terrible condition and exposing commuters to unsafe travel conditions and frequent traffic gridlock.
Abbasi made it clear that this is not a new law or proposal. It is an existing provision that has simply been ignored for years.
Lawmakers Demand Action, Not More Laws
The Speaker of the House of Representatives, Tajudeen Abbas, reminded fellow lawmakers and the Nigerian public that this road user charge is not new. He pointed out that the House had earlier debated the issue on March 19, highlighting that the five percent road user charge, which was supposed to be collected and used for road maintenance, had not been applied since it was introduced under the FERMA Amendment Act of 2007.
The Chairman of the Ad-Hoc Committee, Francis Waive, who also leads the House Committee on Rules and Business, clarified that the committee’s goal is not to create new taxes or laws, but rather to enforce an existing law that has been neglected for nearly two decades.
“This is not an attempt to increase fuel prices or change the law,” Waive said. “The provision has existed since 2007. Our aim is to correct the neglect of existing laws and ensure that government agencies and individuals comply with all legislative mandates.”
Nigerians Worry: Will This Make Petrol and Diesel More Expensive?
This discussion comes just days after Nigerians started enjoying slightly lower fuel prices, largely due to supply from Dangote Refinery and other partners. In Lagos and Abuja, pump prices had recently dropped to between ₦875 and ₦895 per litre, offering a small relief amid economic hardship.
However, the potential introduction of the five percent road user charge could reverse this drop, making petrol and diesel more expensive again.
To understand what this means in practical terms, let’s do a quick calculation:
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If fuel currently costs ₦875 per litre, a 5% charge would add ₦43.75, bringing the total to ₦918.75 per litre.
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Similarly, for diesel at ₦900 per litre, a 5% charge would add ₦45, pushing the price up to ₦945 per litre.
For commercial drivers, transport companies, and small business owners who rely heavily on fuel and diesel, this increase would likely lead to higher transport fares, increased cost of goods and services, and worsening inflation.
Why the Government Says the 5% Charge is Necessary
Despite the expected public backlash, the Federal Ministry of Works believes that this charge is absolutely necessary. According to them, Nigeria’s road network is in such bad shape that it threatens both public safety and economic development. Without a consistent and dedicated source of funding, roads will continue to deteriorate, costing the country even more in the long term.
Minister Goroyo emphasized that temporary fixes and emergency repairs are not enough. What Nigeria needs is a sustainable funding solution, and the road user charge was designed to be just that.
Can There Be a Better Alternative?
Some analysts and civil society groups argue that while the need to fix Nigerian roads is urgent, the government must be careful not to overburden ordinary Nigerians who are already grappling with rising food prices, unstable electricity, and high unemployment. They suggest that the government should consider alternative sources of funding, such as:
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Reducing government waste and corruption.
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Improving tax collection from large corporations.
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Seeking Public-Private Partnerships (PPP) to maintain key roads.
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Allocating a percentage of oil revenue to road infrastructure.
Nonetheless, until such alternatives are developed and enforced, the government seems determined to activate the five percent road user charge as a way to quickly raise funds.
Final Thoughts: What This Means for You
If you’re a Nigerian who relies on petrol or diesel for your daily commute, business, or generator, this proposed charge will likely affect your cost of living. Although the government insists it’s not creating a new law, the reality is that fuel prices may rise once the user charge is enforced.
The hope is that the additional funds will lead to better roads, fewer accidents, and faster travel times. But in a country where government promises are often not fulfilled, many Nigerians remain skeptical.
As the House of Representatives and the Ministry of Works move closer to implementing this long-ignored law, the big question remains:
Will Nigerians get the value of the extra money they’re being asked to pay?
