RFA writes off N$371m in old vehicle licence debts

Motorists who have fallen behind on vehicle licence payments now have a path to financial relief following the implementation of the Road Fund Administration Amendment Act, 2024.

The new law, which came into force through regulations gazetted on 22 August 2025, introduces exemptions and waivers on licence fees, penalties, and interest.

Finance Minister Ericah Shafudah said the reform is designed to balance citizen relief with the sustainability of the Road Fund.

“With this law now in effect, we are introducing a fair and transparent process through which vehicle owners can seek relief on certain fees and penalties. Our intention is to ease the financial burden on citizens without compromising the sustainability of the Road Fund,” Shafudah said.

Breaking the debt cycle

Previously, under the Road Fund Administration Act of 1999, motorists who defaulted had no formal way to seek exemptions. Once a licence expired, arrears and penalties accumulated relentlessly, leaving many drivers trapped in mounting debt.

The situation worsened during the COVID-19 pandemic, when household incomes declined and compliance levels dropped sharply.

The amendment now authorises the RFA’s chief executive officer to consider applications for waivers, while in specific cases, the finance minister will take the final decision. Importantly, the law sets accountability timeframes that include a response from the RFA in a period of 90 days and a decision from the Ministry of Finance within 60 days. This creates predictability for applicants.

Shafudah stressed that the reform does not excuse non-compliance.

“The law is not intended to encourage non-compliance but to ensure fairness in cases where citizens face genuine financial difficulties,” she added.

Historic debts written off

The Road Fund Administration (RFA), established in 1999 to manage road user charges and fund road infrastructure, has long struggled with uncollected licence fees and penalties.

As part of the reforms, the RFA will write off N$371 million in old vehicle licence fee debts accumulated over the past 15 years.

RFA chief executive officer Ali Ipinge explained that the write-off aligns with the Prescription Act of 1969, meaning vehicle owners will not need to apply for this relief.

“Currently, the value of such prescribed debt amounts to over N$371 million. This represents a significant step in relieving the public of historical debts that can no longer be enforced,” Ipinge said.

The amendment builds on earlier measures this year that allowed motorists to renew their licences even if they carried outstanding debts, paving the way for the broader reforms now in effect.

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