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Wednesday, August 6, 2025

Petroleum Products: Lawmakers Assure Full Implementation of 5% Charge

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In accordance with the Federal Roads Maintenance Agency (FERMA) Act of 2007, the House of Representatives has reaffirmed its commitment to seeing that the 5% user tax on petroleum products and diesel is fully implemented.

As part of its efforts to address Nigeria’s urgent road development needs, the House emphasized that the 10th Assembly will continue to prioritize enforcing the provision.

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

In an effort to expedite the process, the committee declared the formation of two subcommittees with members from the Federal Inland Revenue Service (FIRS), the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), FERMA, and other important stakeholders.

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Waive emphasized that actionable results are essential for both the welfare of Nigerian road users and the country’s development, and he tasked the subcommittee members to provide realistic, useful proposals that go beyond paperwork.

According to a release, Tuesday, July 8, 2025, is the day of the subcommittees’ inauguration.

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

The Federal Roads Maintenance Agency’s (FERMA) management team and other pertinent players from the road and petroleum industries attended the meeting.

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