House of Reps endorse bill to establish Federal road safety as FERMA winds-down

Finally, the House of Representatives has adopted the report of its Committee on Works which seeks to establish Federal Road Authority (FRA) and the winding-down of Federal Roads Maintenance Agency (FERMA).

The report was considered and adopted at the Committee of the House chaired by Deputy Speaker Lasun Yussuff, during Tuesday plenary.

The report is to be transmitted to the Senate for concurrence in line with legislative practice.

As a regulator, FRA is empowered to establish Pay-for-Service arrangements, collect revenues and set fees, levies, charges, rates and tariffs as well as erect and maintain toll gates, according to section 15(2) of the bill seen by BusinessDay.

The Authority is also empowered to supervise and ensure that any agency responsible for road safety carry out their responsibilities and adhere to the relevant laws and regulations guiding their activities; regulate passenger and haulage fares, tariffs and charges; carry out inquiries, tests, audits or investigations, including technical and management audits and take such other steps on monitoring the activities of  road operators, road service providers, parties involved in the private sector participation, concessionaires licensees and other persons and agencies and to secure and enforce compliance of the bill.

Section 16 of the bill provides that FRA shall be given “an initial take off grant or subvention as may be appropriated to the Authority by the National Assembly to cover one time transitioning and one time capacity building costs; through annual budgetary process, allocations from National Roads Fund, proceeds from the sale of assets that may accrue to the Authority, public private participation fees, toll fees, rates and tariffs imposed by arrangement made by the Authority, lease, license, rents, advertisement revenue and other internally generated revenue from services or facilities provided by the Authority.

Section 17 stipulates that the Funds shall be used for the development of federal road network and its operations for road management, construction, rehabilitation, reconstruction and maintenance of roads, among others.

Section 24) of the bill, which provides for road plan, stipulates the preparation of 5-year rolling road maintenance and development plan, which will be funded through the funds accrued into the National Road Fund and managed by the National Road Fund Board.

Section 25 however provides for penalties of N200,000 fine or a term not less than 2 years or both for anyone convicted of fraudulent act of thing relating to the issue of receipts or collection fees, levies, charges, rates and tariffs.

According to the explanatory memorandum of the report the bill seeks to “repeal FERMA (establishment, etc) Act, 002 (as amended), the Federal Highways Act, 1971 and the Control of Advertisement (Federal Highways) Act, 1986 and establish the Federal Roads Authority for the safe and efficient management of the federal roads network to meet the socio-economic demands of the country; promote the sustainable development, management, operation and regulation of the road sector and facilitate the development of competitive markets and the promotion of enabling environment for private sector participation in the financing, maintenance and improvement of roads in Nigeria.”

Credit: BusinessDay