The Senate has passed the National Road Fund (Establishment) Bill, 2018. The Bill seeks to establish a National Roads Fund to be a repository of revenues from charges received from road users and other sources for financing, administration and periodic maintenance of road infrastructures in Nigeria.
Presenting the report of the Committee on Works, Chairman Sen. Kabiru Gaya (APC: Kano) stated that the Bill if passed, would provide a predictable and sustainable source of funding for road maintenance; establish a governing Board which shall be responsible for the management of the fund and create an enabling environment for Private Sector participation, management and financing in the road sector.
Sen. Gaya noted that at the plenary session of Wednesday, 17 January 2018, the Senate had referred the Bill to the Committee for further legislative action, after it had failed to agree on Clause 4 which makes provision for the sources of the Road Fund. Following the Senate’s contribution and resolution, the Committee had amended the sources of funding to include:
- Fuel levy of N1 chargeable per litre on any volume of petrol and diesel products imported into Nigeria that shall be based on a revised template that incorporates the fuel levy and is approved by the agency responsible for regulating petroleum pricing;
- A fuel levy of N1 chargeable per litre on any locally refined petroleum products shall be based on a revised template that incorporates the fuel levy and is approved by the agency responsible for regulating petroleum pricing;
- Axle Load Control Charges;
- Toll fees of a percentage not less than 10% of any revenue paid as user charges per vehicle on any road designated as a toll road that are not PPP roads, provided such roads on which toll fees are collected are in good condition;
- International Vehicle Transit Charges;
- Inter-State Mass Transit User Charge of 0.5% deductible from the fare paid by passengers to commercial mass transit operators on inter-state roads, provided the Agency responsible for the economic regulation of road transport has approved such charges and has incorporated it as part of the transport fares;
- Road Fund Surcharge of 0.5% chargeable on the assessed value of any vehicle imported at any time into Nigeria provided the surcharge is incorporated as part of the charges by the Nigerian Customs Service;
- Lease, License or other fees which shall be 10% of the revenue accruing from lease or license or other fees pertaining to non-vehicular road usages along any federal road and collected by the Federal Roads Agency;
- Grants and Loans; and
- Gifts of land, money or other property.
In his concluding remarks, Sen. Gaya noted that the Bill would further contribute to economic growth and deliver on a road sector which will be model for adoption. It is important to note that the bill in question i.e. National Roads Funds Bill, 2018 (HB 49&163) emanated from the House of Representatives and was passed therein on 26 September, 2017 , and thereafter transmitted to the Senate for concurrence.
