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© OKN MEDIA PUBLISHING 2022 - All rights reserved
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FERMA Seeks N700 Billion Annual Budget for Road Maintenance, Warns of Crumbling Infrastructure

Genesis Obong
By Genesis Obong
Published: January 16, 2025
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The Federal Roads Maintenance Agency (FERMA) has issued a desperate plea for a significant increase in its annual budget, warning that the current allocation is woefully insufficient to maintain the nation’s rapidly deteriorating road network.

This stark reality was laid bare during the agency’s budget defense before a joint session of the Senate and House Committees on FERMA.

Minister of State for Works, Mohammad Goronyo, painted a grim picture of the agency’s financial constraints. He emphasized that FERMA requires a staggering N700 billion annually to effectively maintain federal roads across the country. This figure underscores the immense scale of the challenge and the critical need for adequate funding to prevent further infrastructure decay.

“The yearly budget allocation to the agency is grossly inadequate to cater to the enormous task of maintaining the nation’s extensive network of Federal Roads,” Goronyo lamented. “This will require over N700bn annually.”

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Despite the agency’s critical role, its budget allocation remains a mere fraction of what is truly needed. In 2024, FERMA was allocated N103.3 billion, a significant increase from the initial N96.7 billion. However, even this revised figure pales in comparison to the agency’s actual requirements.

Furthermore, the release of funds has been inconsistent. Of the N103.3 billion, only N41.282 billion was released, and to date, only N40.287 billion has been utilized. This erratic funding pattern severely hampers the agency’s ability to plan and execute effective maintenance programs.

Meanwhile, FERMA Director of Information and Public Relations, Maryam Sanusi, said in a statement said that the agency defended its budget proposal of N64.88bn, comprising N4.9bn for personnel costs, N33.468bn for overhead cost, and N26.487bn for capital cost for the 2025 fiscal year.

It stated that the amount is lower than the N77bn proposed for the year 2024.

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The consequences of inadequate road maintenance extend far beyond economic losses. Deteriorating roads pose significant safety risks to motorists and pedestrians, leading to increased accidents and fatalities. They also disrupt the smooth flow of goods and services, hindering economic growth and impacting the livelihoods of countless Nigerians.

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Recognizing the gravity of the situation, Minister Goronyo called upon the legislative committees to support FERMA’s funding request.

“I want to implore this esteemed committee to support the agency to ensure the sustainability of road infrastructure maintenance,” he urged.

“The benefits of increased financial support will ensure scaling up preventive maintenance and promoting sustainable road maintenance practices.”

Senator Hussaini Babangida, Chairman of the Senate Committee on FERMA, echoed the Minister’s concerns. He expressed dismay at the current budgetary priorities, where significant resources are allocated to new road construction while existing infrastructure crumbles.

“If we agree that roads are enablers of growth and development, then there must be a need to interface with all stakeholders to find lasting solutions to this perennial issue of poor funding,” Senator Babangida emphasized.

FERMA is actively exploring innovative solutions to address its funding challenges. The agency is currently developing and refining key policies aimed at generating additional revenue streams and ensuring the long-term sustainability of road maintenance efforts.

The plight of FERMA underscores the urgent need for a comprehensive and sustainable approach to road infrastructure management in Nigeria. Increased and consistent funding, coupled with effective policy reforms, are crucial to ensure the safety, efficiency, and economic vitality of the nation’s transportation network.

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TAGGED:Budget AllocationFERMA Budget
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ByGenesis Obong
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Genesis Obong is a Journalist with relevant experience in Business, Finance and Economic matters in Nigeria and across the West African space.
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