Imposes 0.5% charge on transport fares
Divided over Road Authority Bill
By Taiye Odewale and
Ezrel Tabiowo, Abuja
As ordinary Nigerians continue to feel the pang of economic recession, there are strong indications that further suffering awaits the citizens, with the Senate planning to jerk up the pump price of fuel.
On every litre of petrol and diesel products imported into the country as well as those locally produced, between N5 and N10 would be charged as added costs.
The proceeds, the lawmakers said, would be channelled into the National Roads Fund, the consequences of which will not only lead to increase in the prices of petroleum products, but also transport fares.
If the proposed plan sails through, a litre of petrol which currently sells for N145 per litre, may be jerked up to between N150 and N155 of the same quantity.
In the same vein, 0.5% charges would also be deducted from the fares paid by passengers on inter-state routés.
These are some of the highlights of the report by the Senate Committee on Works on the bill seeking the establishment of the NRF.
Other proposed sources of revenue for the NRF, according to the report signed by 12 out of the 15 member-committee led by Senator Kabiru Gaya (APC Kano South), Axle load control charges, International Vehicle Transit Charges, Roads Fund Surcharge of 0.5% chargeable on the assessed value of any vehicle imported at any time into Nigeria, 10% from toll fees on federal roads, and 10% of revenue accruing from lease or license or other fees pertaining to non–vehicular road usages along any federal road collected by federal roads agency.
Though the Senate at yesterday’s sitting did not consider the report as listed on the Order Paper due to want of time, but the report is most likely to be considered next week Tuesday, being a product of a bill sponsored to that effect by Gaya, the committee chairman.
Senator Gaya, had on October 19, 2016, led a debate on the bill, submitting that Roads Fund Solution is the way out for rehabilitation and maintenance of national roads in Nigeria.
He said: “At the core to the Road Fund Solution is the concept that some of the insufficiency and unpredictability of funding (and by extension, planning), can be mitigated by extracting additional funds from those that use the road assets in the form of a user-based charge or levy.”
Committee members who signed the report are; Senators Gaya, Clifford Odia (Vice Chairman), Bukar Aba Ibrahim, Ben Bruce, Abubakar Kyari, Mustapha Bukar and Sani Mustapha.
Others are Senators Barnabas Gemade, Mao Ohuabunwa, Gilbert Nnaji, Ibrahim Danbaba and Buruji Kashamu, while the Chief Whip, Senator Olusola Adeyeye, Senator Biodun Olujimi and Senator Ahmed Ogembe, did not sign.
Roads Authority Bill
Meanwhile, the lawmakers were divided over the Federal Roads Authority Bill, following a strong disagreement which ensued during a clause by clause consideration of the bill.
The disagreement was triggered by an item in the report of the Senate Committee on Works, that recommended a 10- year work experience for the appointment of the director of the board, and who must possess a university degree as minimum educational qualification.
Chairman of the committee, Senator Gaya, while presenting the report, said the bill among other objectives, seeks to establish Federal Roads Authority to perform the functions set out in accordance with the provisions of the bill.
Other objectives, he said, include managing the federal road network to ensure safety and efficiency, with a view to meeting the socio-economic development demands of the country.
He said: “It also seeks to promote the sustainable development and operation of the road sector, facilitate the development of competitive markets and the promotion of enabling environment for private sector participation in the financing, maintenance, management
and improvement of roads in Nigeria.”
Gaya noted that the Federal Government’s intentions on road sector reform, started since 1970, adding that the bill had waited for 47 years.
“During former President Olusegun Obasanjo’s administration, the Road Vision 2000 was articulated as a road map to establish a National Road Board, create a National Road Fund, establish executing agencies such as the Federal High Way Authority, which was accepted by the government but never implemented.
“In 2002, government created the Federal Road Maintenance Agency (FERMA) to address road maintenance issues. In 2004, there was an attempt to activate the Road Vision again, while in 2011, the Federal Ministry of Transport, set up a committee for road sector reform to actualise the implementation of the road reform sector.
“Stakeholders undertook a study tour and the report was submitted but
was never implemented,” he said.
The lawmaker further noted the road sector required a more robust governance and institutional framework that would enhance the work of FERMA.
Gaya added that if passed , the Bill would give FERMA the responsibility of not only road maintenance, but road construction, rehabilitation, network planning and technical regulation.
At this point, sharp division between senators however ensued when another lawmaker, Senator Kabiru Marafa (APC, Zamfara), kicked against the recommendation of the report on educational qualification.
Marafa decried the situation where the position for director of the board would be reserved for university degree holders alone, saying same would limit the progress of the nation.
“This is not in line with our tradition in passing Bills. We have graduates for both HND and university. The issue of HND and university dichotomy had always generated heated issues which have held back the progress of this nation.
“It has been lingering. HND is equivalent to a degree. This matter is not in line with our constitution which says that any law passed that is not in tandem with our constitution is null and void. We must not be shut down.”
The Senate, while approving some clauses in the bill, however stood down consideration of the controversial clauses to another legislative day.
