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The Federal Roads Maintenance Agency has said it is set to establish a state-owned enterprise known as “FERMA State-Owned Enterprise” to support revenue generation for the agency.
The Managing Director of FERMA, Dr Chukwuma Agbasi, revealed this while speaking at the latest edition of the Bureau of Public Service Reforms seminar titled “Road Infrastructure: Plans and Priorities of FERMA viz-a-viz the president’s renewed Hope agenda,” held in Abuja on Tuesday.
Agbasi highlighted the lack of funding as a major drawback of the agency and hoped to bring initiatives to augment funding from the federal government.
According to him, the business feasibility of the enterprise has been done, noting that the initiative is at the technical and operational audit level and will commence before the end of the year.
He said, “Inadequate budgetary provisions and delayed releases have hindered FERMA’s ability to carry out essential road maintenance activities
“The institution is endeavouring to enhance its capacity and capability within the road system. This involves transitioning our staff and agencies into a data-driven, 21st-century model that relies on data and essential equipment for effective functioning.”
He explained, “Recognising that funding has been a persistent challenge, it is crucial to explore diverse funding avenues to support the agency’s needs.
We are committed to perpetually refining our processes by leveraging current technologies that yield efficiency and cost benefits.
FERMA plans the establishment of a “FERMA State-Owned Enterprise,” to increase revenue generation in addition to what we get from the government. It would commence before the end of the year.”
He added that accumulated maintenance tasks posed a significant challenge, affecting the overall condition of roads.
He said aging road surfaces required urgent attention to prevent further deterioration.
