Motorists may have to brace up for multiple taxes, if President Muhammadu Buhari finally gives assent to the National Roads Fund Bill, which has already been passed by the Senate and House of Representatives.
Although both chambers of the National Assembly have passed the bill, they will have to set up a conference committee to harmonise the versions of the Senate and House of Representatives, before sending same to the President for assent.
The National Roads Fund Bill is one of the economic recovery bills that seeks to create alternative sources of financing routine and periodic maintenance of 34,000 kilometres of federal roads, in addition to budgetary allocation.
The country requires over N3 trillion to address the huge road infrastructural deficit.
The bill seen by BusinessDay, stipulates six different taxes imposed on Nigerian motorists, which include: toll fees, axle load control charges, international vehicle transit charges, inter-state mass transit user charge, roads fund surcharge as well as lease, license or other fees from non-vehicular road usages.
Breakdown of the taxes include: 0.5 percent Inter-State Mass Transit User Charge on fare paid by passengers to commercial mass transit operators, 0.5 percent Roads Fund Surcharge on the value of any vehicle imported into Nigeria, even as 10 percent of any revenue paid as user charge per vehicle on designated toll roads will be payable to the Fund.
If signed into law, finance minister will have the power to review and vary the amount of the percentage of revenue accrued to the Roads Fund from toll fees.
However, the lawmakers removed the controversial fuel levy, which would have led to hike in petroleum prices if passed into law.
The bill seeks to establish the National Roads Fund, which will provide a predictable and sustainable source of funding for road maintenance, establish a Governing Board that 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.
According to the bill, other alternative sources of financing and periodic maintenance of national roads include: grants and loans as well as gifts of land, money or other property.
If the bill is passed into law, it means the revival of tolls collection on federal highways across the country, 14 years after former President Olusegun Obasanjo abolished it in 2004.
The proposal also indicated that the Board shall, within the first year of its establishment, prepare a five-year Rolling Road Financing Plan.
“The Plan shall constitute the basis upon which Road Agencies shall develop the road maintenance component of their own programmes from funding provided by the Roads Fund and the Board shall use the Plan as a monitoring to check the utilisation of the funds disbursed to the Roads Agencies by it.
“The Board shall within the five-year rolling plan cycle keep the Plan under review and update it annually with consideration given to extant government policy including the master plan for the transportation sector, the National Integrated Infrastructure Master Plan and with appropriate input from the Road Agencies as well as any directives given by the Minister pursuant to Section 27 provided that any of the fore going are not inconsistent with the provisions of this Bill,” Section 22 of the bill states.
In an interview with BusinessDay, sponsor of the bill and chairman, Senate Committee on Works, Kabiru Gaya, explained that the Senate deleted the controversial Fuel Levy from the bill because it had already been taken care of in the Petroleum Industry Governance Bill (PIGB) currently awaiting concurrence from both chambers.
While noting that the bill would further contribute to economic growth and deliver on a road sector, which will be model for adoption by other countries, the lawmaker explained that no road would be tolled until they are properly fixed.
“The roads will be tolled only at the time when the roads are good because if you decide to toll the road now, I think they (Nigerians) will break your head with a stick. Most of the roads are bad now but we are working hard to ensure that the roads are in place,” he said.
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