Fuel Prices May Rise as FG, Reps Push for 5% Road User Charge Implementation

What’s Happening?

The Federal Government and House of Representatives are pushing for the implementation of a 5% road user charge, which could lead to an increase in fuel and diesel prices.

Why the Charge?

🚧 Nigeria needs ₦880 billion annually for road maintenance, but budget allocations have fallen short.

🚧 The 5% road user charge was introduced in the FERMA Act of 2007, but it has not been properly implemented.

🚧 Officials argue that enforcing the charge will provide sustainable funding for road repairs, reducing reliance on inconsistent budget allocations.

How Will It Affect Fuel Prices?

⛽ The charge will be factored into the pump price of petrol and diesel, meaning consumers may pay more at the pump.

⛽ The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is expected to oversee the deductions, ensuring compliance.

⛽ Despite recent fuel price reductions, this policy could reverse the trend, leading to higher costs for motorists.

Government’s Stand

📢 Speaker of the House, Tajudeen Abbas, insists this is not a new tax but an enforcement of an existing law.

📢 The House Committee on Rules and Business is investigating past failures to remit the charge, aiming to ensure compliance.

📢 Officials stress that better road infrastructure will ultimately benefit Nigerians, despite potential short-term price hikes.

What’s Next?

⚖️ Will fuel prices increase immediately, or will there be a phased implementation?

⚖️ How will Nigerians react to the enforcement of this charge?

⚖️ Will the funds be properly utilized for road maintenance?

💬 What’s your take on this policy? Should the government prioritize road repairs over fuel affordability? Drop your thoughts below! 🚀