Senate Proposes Increase In Pump Price To Fund Road Projects |FortNews

Nigerians may soon pay more for petroleum products if the Senate succeeds with its plan to impose N5 per litre fee for the funding of road projects in Nigeria.

This new arrangement may raise the price of a litre of petrol to N150.

The charge will also be im­posed on other petroleum prod­ucts, such as diesel and kerosene.

The proposal is contained in the report of the Senate Commit­tee on Works on the Bill to estab­lish National Roads Fund.
The Bill, among others, pro­poses fuel price increase and in­troduction of various charges and surcharges to fund the planned National Roads Fund when as­sented to by the President.

The committee, chaired by Senator Kabiru Gaya, said that the Executive arm of government should impose a fuel levy of N5 per litre of Premium Motor Spir­it (PMS), as a major source of rev­enue for funding the Fund.
In its report on the National Roads Fund (Establishment etc) Bill 2017, which is currently be­fore the Senate for passage, fur­ther recommended other levies and taxes to enable the govern­ment finance the Roads Fund when established.
The committee is made up of 15 members, of whom 12 of them signed the document and three, who are probably out of the country, did not append their signatures to it.

The N5 fuel levy is chargeable per litre on any volume of petrol and diesel products imported into Nigeria and on locally refined pe­troleum products.

Other charges, which the committee recommended to form part of sources of revenue for the National Roads Fund are axle load control charge; toll fees (a percentage not exceeding 10% of any revenue paid as user charge per vehicle on any federal road to Public-Private Partnership (PPP) roads.

The commission is also to be funded through International Ve­hicle Transit Charges; Inter-State Mass Transit User charge of 0.5% deductible from fare paid by passengers to commercial mass tran­sit operators on inter-state roads.

Other sources of funds for the National Roads Fund are roads fund surcharge of 0.5% chargeable on the assessed value of any vehicle imported at any time into Nigeria.

Furthermore, the Fund shall be managed through lease, li­cense or other fees which shall be 10% of the revenue accruing from the lease or license or oth­er fees pertaining to non-vehicu­lar road usages on any federal road and collected by the Federal Roads Agency; grants and loans and gifts of land, money or other property.

In the report, the committee recommended that the Nation­al Roads Fund should be under the Federal Ministry of Finance which will only oversee the Fund for policy direction, stressing that it should enjoy high level of inde­pendence.

It further recommended that a hybrid approach to board mem­bership should be adopted with a high level of stakeholder and pri­vate sector membership.

Other recommendations read: “the National Roads Fund shall set aside an amount not exceeding 3% of the total monies accruing to it in the preceding year as Administra­tive Fund.

The report was to go through a clause-by-clause consideration before final passage by the Up­per Chamber on Thursday but was stood down for another leg­islative day.
The Chamber adjourned till June 6, 2017

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