By Chibuike Nwabuko
Abuja (Sundiata Post) – Senate on Thursday recommended N1 fuel levy, chargeable per litre on any volume of petrol and diesel products imported or locally refined as a source of fund for its proposed national Road Fund.
This is coming as the Red Chamber passed the National Road Fund Bill on Thursday following the consideration of the report of its 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.
According to the Chairman, Senate Committee on Works, Senator Kabiru Gaya international best practice suggests that revenues to the roads fund should be supplemental to the budget, coming from charges related to road use and channeled directly to the road fund account.”
He further informed that the bill will create a favourable environment for private industry participation, management and financing in the road sector.
The 9-part-bill has enjoyed a speedy legislative process after it was read for the first time on the floor of the Senate.
However, many have expressed fears that this may lead to increase in the pump price of fuel which the people see as being in the high side already.