Reps mandate committee to investigate revenue of FRSC

There is no clear accounting or transparency in how these funds are managed or shared.”

By Deborah Hassan

365Daily – The House of Representatives has directed its Committee on Federal Road Safety Corps (FRSC) to investigate the revenue generated from the issuance and renewal of driver’s licences, amid concerns of lack of accountability and persistent delays in the process.

The resolution followed a motion raised during plenary on Wednesday, May 21, 2025, by Hon. Victor Afam Ogene.

Leading debate on the motion, he expressed alarm over allegations that the FRSC has been operating outside its bounds in the administration of driver’s licences and controlling revenue meant to be shared with other stakeholders.

Presenting the motion, a member of the House said: “There is a tripartite arrangement involving the FRSC, the State Boards of Internal Revenue (BIR), and the Vehicle Inspection Offices (VIO), yet the FRSC appears to be unilaterally warehousing and managing data and funds through its Information Processing Center. This undermines the roles of other agencies.”

He further stated: “The revenue from services such as licence issuance, learner permits, driving school certification, and driving history applications runs into hundreds of billions of naira yearly, but there is no clear accounting or transparency in how these funds are managed or shared.”

The House also noted that the Motor Vehicle Administration Agency (MVAA) in each state is the approving authority for driver’s licences, and that a learner’s permit is issued by the MVAA for a prescribed fee. However, lawmakers raised concerns that the FRSC’s operation of VIP centres for licence processing may bypass state agencies entirely.

Another lawmaker said: “We are worried that the FRSC is not being transparent with the revenues it collects. State and local governments, as well as the VIOs, are being sidelined. This is not only a breach of trust but a violation of the collaborative framework that was originally established.”

The House also highlighted that the Joint Tax Board (JTB) had approved new fees since November 1, 2024—N21,000 and N15,000 for five- and three-year vehicle licences, and N11,000 and N7,000 for motorcycle and tricycle licences—but there is still no clear public record of the revenue collected or how it is utilised.

Adding to the concerns, lawmakers decried the delays in issuing licences, sometimes stretching two to three years after biometric data is captured. They attributed this to the FRSC’s alleged indebtedness to service providers like Galaxy Backbone, who maintain the biometric systems.

“We must ask hard questions about why applicants are made to wait for years before getting their licences. What happened to the funds meant for maintaining the system?” one member queried.

The House resolved to mandate its Committee on Federal Road Safety Corps to investigate the revenue generated in the last three years, how it was used, the reasons behind the delays in issuance, and which agency has the legal authority to design, produce, and issue driver’s licences.

The Committee is expected to report back within four weeks.

 

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