The Federal Roads Maintenance Agency (FERMA) has officially presented a budget proposal of N229.9 billion for the 2026 fiscal year, while making a strategic plea to the National Assembly for inclusion in the “fossil fuel surcharge” to create a sustainable funding stream for Nigeria’s road network.
During a budget defense session held on Thursday, February 19, before the House of Representatives Committee on FERMA, the Managing Director/CEO, Engr. Chukwuemeka Agbasi, detailed the agency’s financial requirements to combat the nation’s mounting infrastructure deficit.
A central highlight of the presentation was the call for the full implementation of the FERMA Act, specifically regarding the 5% user charge on the pump price of petrol and diesel. Engr. Agbasi argued that the agency’s current reliance on “envelope” budgetary allocations is insufficient to maintain over 36,000 kilometers of federal roads.
“To move away from the cycle of reactive repairs, we need a dedicated and predictable revenue source,” Engr. Agbasi stated. “Inclusion in the fossil fuel surcharge would provide the liquidity necessary for proactive, life-cycle maintenance of our highways.”
A request for N229.9 billion to cover capital projects, personnel, and overhead costs.
The funds are earmarked for the rehabilitation of high-traffic economic routes and the restoration of roads damaged by recent flooding and heavy monsoon cycles.
The agency noted that years of underfunding have created a significant “maintenance debt” that requires immediate intervention to prevent total road failure.
Despite the ambitious request, FERMA highlighted its successful 2025 performance, where it utilized “Direct Labour” to maximize value for money.
The House Committee, chaired by Hon. Remi Oseni, expressed strong support for FERMA’s vision. While acknowledging the current economic climate, the Committee agreed that the “envelope system” is a mismatch for the scale of Nigeria’s road challenges.
The lawmakers pledged to look into the legal and administrative hurdles preventing the remittance of the fuel surcharge to FERMA, noting that “good roads are a non-negotiable component of national security and economic stability.”
