Fears of fuel price increase as Senate passes road fund bill

OrderPaperToday – The Senate has passed the National Road Fund Bill, following consideration of the report of the Senate Committee on Works.

The bill seeks to establish a national road fund, which will be a repository of revenue from road-user-related charges and other sources. Subsequently, revenue accrued will be administered for periodic maintenance works on Nigerian roads.

Also, the bill will create a favourable environment for private industry participation, management and financing in the road sector.

A major source of funds identified in the Committee’s report is a N1 fuel levy, chargeable per litre on any volume of petrol and diesel products imported or locally refined.

Fears have been expressed as to the possibility of this levy resulting to an increment in the pump price of petrol.

According to the Chairman of the Committee, Senator Kabiru Gaya (APC, Kano), “international best practice suggests that revenues to the roads fund should be supplemental to the budget, coming from charges related to road use and channelled directly to the road fund account.”

The 9-part-bill has enjoyed a speedy legislative process after it was read for the first time on the floor of the Senate on Wednesday, 17th January 2018.

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