•Moves to tackle poverty  

•Declares 7-year moratorium on new varsities, polytechnics, colleges of education

•Says proliferation weakening quality, resources spread too minimal

•Okays N493bn target for Kano–Katsina road upgrade, Carter bridge construction

Deji Elumoye in Abuja

President Bola Tinubu, yesterday, said Nigeria’s goal of $1 trillion economy by 2030 required growth of at least seven per cent annually from 2027.

Tinubu described the target as “not just economic, but a moral imperative,” as higher growth was the surest way to tackle poverty.

He cited the July 2025 International Monetary fund (IMF) Article IV report, which he said endorsed Nigeria’s economic trajectory and the need for investment-led growth.

The president also ordered a sweeping review of deductions and revenue retentions by the country’s major revenue-generating agencies, in a move to boost public savings, improve spending efficiency, and unlock resources for growth.

The directive issued at the Federal Executive Council (FEC) meeting at Council Chambers, State House, Abuja, which was presided by the president, applied to Nigerian National Petroleum Company Limited (NNPCL), Federal Inland Revenue Service (FIRS), Nigeria Customs Service, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and Nigerian Maritime Administration and Safety Agency (NIMASA).

Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, made the directive public while speaking to newsmen after the FEC meeting. Edun stated that

Tinubu specifically called for a reassessment of NNPCL’s 30 per cent management fee and 30 per cent frontier exploration deduction under the Petroleum Industry Act (PIA).

The president tasked the Economic Management Team, led by Edun, to present actionable recommendations to FEC on the best way forward.

Tinubu said the directive was part of efforts to sustain reforms that had dismantled economic distortions, restored policy credibility, enhanced resilience, and bolstered investors’ confidence.

According to him, the reforms have created a transparent and competitive business environment attractive to local and foreign investors in critical sectors, such as infrastructure, oil and gas, health, and manufacturing.

Reaffirming the Renewed Hope Agenda, Tinubu said Nigeria’s goal of $1 trillion economy by 2030 required growth of at least seven per cent annually from 2027, a target he described as “not just economic, but a moral imperative”, as higher growth is the surest path to tackling poverty.

He cited the July 2025 International Monetary Fund (IMF) Article IV report, which he said endorsed Nigeria’s economic trajectory and the need for investment-led growth.

Emphasising grassroots empowerment, the president pointed to the Renewed Hope Ward Development Programme, a ward-based initiative covering all 8,809 wards across the country. The programme is designed to lift economically active citizens through micro-level poverty reduction strategies in collaboration with states, local governments, and private partners.

He stated that public investment accounted for just five per cent of the country’s Gross Domestic Product (GDP) due to low savings, stressing that optimising “every available naira” is vital, especially under current global liquidity constraints.

Shedding more light on the president’s directive, Edun said macro-economic indicators were improving, with a more stable exchange rate, easing inflation, rising revenues, and debt-to-GDP ratios now within range.

He described savings as the foundation of investment and said the president’s directive aimed to quickly raise public sector savings by reviewing deductions and retention practices.

Edun further stated that he presented two memoranda before Wednesday’s FEC meeting — a $125 million Islamic Development Bank financing for infrastructure in Abia State, covering 35 kilometres of roads in Umuahia and 126 kilometres in Aba; and a plan to refinance N4 trillion in outstanding electricity sector obligations.

According to him, the electricity debt resolution will be executed in phases, with the first phase expected within three to four weeks under the coordination of the Debt Management Office and other agencies.

FEC also approved four major proposals from the Ministry of Power in a renewed drive to reform and strengthen the country’s national electricity grid.

Minister of Power, Adebayo Adelabu, told reporters that the measures were aimed at modernising ageing transmission infrastructure, improving supply reliability, and meeting rising electricity demand nationwide.

Adelabu stated that the first approval was the release of N13 billion for compensation on right-of-way acquisitions under the Lagos Industrial Transmission Project, funded through a $238 million development loan from the Japan International Cooperation Agency (JICA).

He said the project was targeted at boosting supply to key industrial clusters in Lagos, which accounted for a large share of Nigeria’s manufacturing output.

The minister said, “This funding covers compensation to property owners and communities affected by the transmission lines’ route. Once completed, the Lagos Industrial Transmission Project will ensure that our industrial estates have the dedicated, stable power they need to drive economic growth and create jobs.”

He stated that the other three approvals centred on the procurement and installation of high-capacity transformers to replace weak, overloaded, and obsolete units on the national grid.

The equipment procurement was valued at $34 million, with an additional N5.2 billion for associated costs.

The breakdown included two units of 150MVA 330/132kV transformers; three units of 100MVA 132/33kV transformers; five units of 60MVA 132/33kV transformers; and two units of 30MVA 132/33kV transformers.

Adelabu stated, “These transformers will be deployed strategically across the grid to relieve overloaded facilities, improve voltage stability, and accommodate the increased transmission capacity we are building.”

Adelabu described Nigeria’s national grid as an ageing system, much of which had been in operation for over five decades and was operating beyond its intended lifespan.

He said, “Many of the transformers, cables and related components are weak and prone to failure. Regular maintenance and timely replacement are essential if we are to achieve a stable, reliable and effective grid that meets the needs of households, offices, small businesses and industries.”

He assured that the latest approvals represented a significant step in the Tinubu administration’s broader power sector reform agenda, aimed at eliminating transmission bottlenecks, reducing system collapses, and laying a foundation for sustainable economic growth through improved electricity access.

FEC also approved a seven-year moratorium on the establishment of new federal universities, polytechnics, and colleges of education in a bid to halt the proliferation of under-utilised institutions and refocus resources on improving existing ones.

Minister of Education, Dr Olatunji Alausa, told newsmen that a memo he presented before the council was approved, stressing that access to tertiary education in Nigeria is “no longer the problem”.

Alausa said unchecked duplication of federal tertiary institutions had led to alarming inefficiencies, poor infrastructure, inadequate staffing, and declining student enrolment.

According to him, several federal universities operate far below capacity, with some having fewer than 2,000 students.

In one northern institution, the minister disclosed, there were 1,200 staff serving fewer than 800 students.

He said, “This is a waste of government resources. Today, we have 199 universities where fewer than 100 candidates applied through JAMB for admission. In fact, 34 universities recorded zero applications.

“The situation is not limited to universities. Out of 295 polytechnics nationwide, many had fewer than 99 applicants last year, while 219 colleges of education recorded similarly poor enrolment. Sixty-four colleges of education had no applicants at all.”

Alausa warned that if the trend continued, Nigeria risked producing poorly trained graduates, losing international respect for its degrees, and worsening unemployment as thousands of ill-prepared graduates entered a saturated job market.

The moratorium, he stressed, will enable the government to mobilise resources to upgrade facilities, recruit qualified staff, and expand the carrying capacity of existing federal tertiary institutions.

“If we want to improve quality and not be a laughing stock globally, the pragmatic step is to pause the establishment of new federal institutions. This way, we can sustain the respect the world has for our graduates,” the minister said.

He pointed out that Nigeria currently had 72 federal universities, 42 federal polytechnics, and 28 federal colleges of education, in addition to hundreds run by states and private investors. There are also specialised institutions, such as colleges of agriculture, health sciences, nursing, and innovation enterprise institutions, many of which are also under-enrolled.

Notwithstanding the moratorium, the minister disclosed that FEC also approved nine new universities. He explained that these were not fresh proposals but long-pending private applications, some dating back over six years, that had already undergone rigorous evaluation under the National Universities Commission (NUC).

“When we came in, there were about 551 applications for private universities. Many had been in limbo for years because of inefficiencies in the NUC’s processing system,” he said.

The minister said his team overhauled the process, deactivating more than 350 inactive applications and introducing strict new guidelines with clear timelines. Out of 79 active applications, nine met the criteria and were approved, he said.

“These are private investments where billions of naira have already been spent on infrastructure. It would have been unfair to deny them approval because of past inefficiencies. But this does not affect the moratorium on federal universities, polytechnics and colleges of education,” Alausa stressed.

He added that similar moratoriums were already in place for new private polytechnics and colleges of education to prevent a further glut of poorly subscribed institutions.

The minister applauded Tinubu for backing the reforms, saying the decision reflects the administration’s determination to deliver “world-class” education to Nigerians.

Adelabu stated, “Mr President believes fervently in education and has given us the mandate to ensure every Nigerian has access to the highest quality of education comparable to anywhere in the world.”

He said the seven-year freeze was intended to be a reset button for Nigeria’s tertiary education system,  shifting focus from quantity to quality.

FEC also granted approval for the construction of modern bus terminals in each of the country’s six geo-political zones at a total cost of N142,028,576,008.17.

Minister of Transportation, Senator Sa’idu Alkali, told newsmen that the contract was awarded to Messrs Planet Project Limited.

According to him, the terminals will be located in Abeokuta (South-west), Gombe (North-east), Kano (North-west), Lokoja (North-central), Onitsha (South-east), and Ewu in Edo State (South-south).

Alkali described the project as the first direct Federal Government intervention in road transport infrastructure beyond road construction. He said the choice of locations was based on economic viability.

He explained that the absence of purpose-built bus terminals to cater for millions of Nigerian commuters had contributed to rising cases of crime, road traffic accidents, and proliferation of arms and ammunition on the country’s highways.

Alkali stated, “This is the first time government is having an intervention in road infrastructure apart from road construction. In spite of the significance of road transportation in Nigeria, there are no bus terminals that address the interest of millions of commuters. This has resulted in increased crime, road traffic accidents, and the spread of arms on our highways.”

Alkali said the initiative was conceived by the Ministry of Transportation to improve road transport safety, enhance passenger comfort, and boost economic activities.

FEC also earmarked a total of N493 billion for two major infrastructure projects: the upgrade of the Kano–Katsina Road and the construction of a new Carter Bridge in Lagos State. Minister of Works, Senator David Umahi, who disclosed this to reporters, stated that significant cost revisions had been made to the 152-kilometre Kano–Katsina Road due to prevailing economic conditions. The road had previously been divided into two sections by the former administration.

According to Umahi, “Section One, covering 74.1 kilometres, was initially awarded in 2013 at N14 billion and revised to N24 billion. It has now been updated to N68 billion. Section Two, spanning 79.5 kilometres and awarded in 2019 for N29 billion before increasing to N46 billion, has been further adjusted to N66.115 billion.”

The combined cost for both sections now totalled around N134 billion, with N6 billion allocated in the 2024 budget and N34 billion in the 2025 budget for Section One, the minister said, adding that Section Two will receive N80 billion across the same two years.

On Carter Bridge, Umahi detailed findings from underwater assessments conducted in 2013 and 2019, which revealed severe damage to the bridge’s substructure caused by illegal sand mining, erosion, and corrosion of piles and piers.

Julius Berger, the contractor responsible for underwater and structural repairs, advised that the bridge was beyond salvaging and recommended complete replacement.

Umahi said, “The cost of constructing a new Carter Bridge is estimated at about N359 billion, and discussions have been initiated with Deutsche Bank regarding potential funding.”

The minister stated that similar underwater structural problems were found in the Third Mainland Bridge, with rehabilitation estimated at N3.8 trillion and new construction at N3.6 trillion.

He stated, “FEC approved the engagement of at least seven specialist contractors under an EPC+F (Engineering, Procurement, Construction, and Financing) framework to conduct detailed investigations, design, and bidding for both rehabilitation or new building options for Carter and Third Mainland bridges.

“Additionally, the council sanctioned the advertisement of public-private partnership (PPP) bids for these projects.”

Umahi also listed other bridge interventions that received FEC approval to include Jalingo Bridge in Taraba State, Ido Bridge (which was burned and required removal of three spans), Keffi Flyover in Nasarawa State, Mokwa Bridge in Niger State, a damaged bridge on the Abuja-Kogi route, bridges between Lagos and Ibadan affected by vehicle impacts, Jebba Bridge in Kwara State, and the Itokin–Ikorodu Bridge in Lagos.

He said, “These emergency works will be articulated and forwarded to Mr. President for approval through the Minister of Finance.”

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