*Establishes Federal Road Authority.
*Rejects Report on Road Fund.
Senate on Thursday considered and passed a bill which seeks to establish Federal Roads Authority{FRA} after it was stepped down last week.
The upper legislative chamber revisited the bill on Thursday and quickly passed it without hitches.
The lawmakers had stepped it down last week following disagreement over the qualification of the Director of Works.
Senate may have brushed the issue aside as the bill was read for the third time and passed.
When the law becomes operational, the proposed agency would replace Federal Road Maintenace Agency {FERMA} to deal with the challenges of road infrastructure in Nigeria.
The bill is sponsored by Senator Kabiru Gaya representing Kano South who is also Chairman Senate Committee on Works.
Senate however rejects report on National Road Funds; stepping it down for further legislative action.
The proposed Road Funds bill has generated controversy over alleged plans to introduce an additional N5 fuel levy as oneof the major source of financing the fund.
Speaking in favour of the bill, Gaya explained that it would “provide a predictable funding for roads in Nigeria.”
He said it would create environment for effect participation of Public-Private collaboration.
He denies plan to introduce additional N5 fuel levy; pointing out that the proposed N5 is to be deducted from the existing template of N145 per litre of fuel.
He said the idea of road funds is not new citing exmaples from countries like Tanzania, Kenya, Ghana, Malawi, Togo and United States of America that generate funds from fuel levy.
According to Gaya, Nigeria can generate N94 billion annually from fuel levy to help fund roads in the country.
He said the levy will be paid directly into signatory account of the National Road Funds; adding that Customs shall be responsible for the remittance.
Senator Kabiru Marafa representing Zamfara Central however disagrees with Gaya’s explanation.
He said it is not entirely correct that the proposed N5 fuel levy is captured in the industry template.
Marafa warns that the plan to introduce N50 fuel levy would further put pressure on an already stressed petroleum downstream sector and cause hardship for the people.
He advised the Committee on Works to explore other areas such as toll fee or any other road taxes cautioning strongly against fuel levy in whatever guise.
Deputy Senate President, Ike Ekweremadu who presided over plenary added his voice to disclaimer that Senate has no plan to increase pump price.
The report is subsequently stepped down to enable other relevant committees go through its content.
