Senate moves for N5 fuel levy

To fund proposed National Roads Fund with taxes
Every passenger to pay additional charge of 0.5%

By Henry Umoru

ABUJA— STRONG indications emerged, yesterday, that the Senate is recommending a fuel levy of five naira chargeable per litre on any volume of petrol and diesel products imported into Nigeria and on locally refined petroleum products.

The Senate also recommended various taxes and levies to fund the proposed National Roads Fund.

The recommendations are contained in a report by the Senate Committee on Works on a Bill for an Act to Establish the National Roads Fund for the purpose of financing the Maintenance and Rehabilitation of National Roads and for other Matters connected therewith, 2017( S.B 218) presented by its chairman, Senator Kabiru Gaya (APC, Kano South).

In the report, which was signed by Senator Gaya and others, the committee recommended that the proposed National Roads Fund would be funded through axle load charges, toll fees, a percentage not exceeding 10 per cent of any revenue paid as use charge per vehicle on any federal road designated as a toll road, excluding PPP roads.

Every passenger to pay additional charge of 0.5%

According to the report, another source of revenue for the National Roads Fund include international vehicle transit charges, inter-state mass transit user charge of 0.5 per cent deductible from the fare paid by passengers to commercial mass transit operators on inter-state roads.

Other sources of revenue recommended by the committee are Roads Fund surcharge of 0.5 per cent chargeable on the assessed value of any vehicle imported at any time into Nigeria; lease, license or other fees which shall be 10 per cent of the revenue accruing from lease or license or other fees pertaining to non-vehicular road usages along any federal road.

The committee in its report, also recommended that the National Roads Fund be established with high levels of independence under the jurisdiction of the Federal Ministry of Finance that will only oversee the fund for policy direction.

It added that it was important and fundamental that a balance be achieved in the administration and development of the road infrastructure in the country.

The committee chairman explained in the report:  “A National Roads Fund should be established with high levels of independence under the jurisdiction of the Federal Ministry of Finance who will only oversee the fund for policy direction.

“It is important and fundamental that a balance be achieved in the administration and development of the road infrastructure.’’

Other recommendations

Other recommendations of the committee are that the fund “shall set aside an amount not exceeding three per cent of the total monies accruing to it in the preceding year as Administrative Fund.

“The use of National Roads Fund is restricted to routine and periodic maintenance works on roads and the administration of the road network, which includes research and development.

“Roads agencies that will receive disbursement from the National Roads Fund must be established by law as independent agencies with dedicated accounts to receive disbursements from the National Roads Fund.

“The National Roads Funds should be excluded from the Consolidated Revenue Fund and Treasury Single Account relying on Section 80 (1) of the 1999 constitution (as amended).

Senator Gaya said the legislation, when passed, will contribute positively to the economic growth of the nation and impact positively on the lives of Nigerians and deliver a road sector that will be a model for other countries to adopt.

He explained that the establishment of Roads Fund to address constraints in road maintenance had been on a common pathway for effective governance within the road sector over the years.

In the report, the objectives for of the bill are to establish the National Roads Fund to be a repository of revenues from road user related charges and other sources for financing which shall be managed and administered for routine and periodic maintenance works    on roads in Nigeria.

Other  objectives are to establish the 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.

Other members of the committee who signed the report are Senator Clifford Ordia who is the Vice Chairman; Senators Barnabas Gemade; Mao Ohuabunwa; Bukar Abba Ibrahim; Ben Murray- Bruce; Abubakar Kyari; Mustapha Bukar; Sani Mustapha; Gilbert Nnaji; Ibrahim Danbaba; Buruji Kashamu and the Clerk, Foluke Ogunbayo.

Members of the committee who did not sign the report include Senators Olusola Adeyeye; Ahmed Ogembe and Biodun Olujimi.

 

 

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