FEC Approves Billions for Power Upgrades, Imposes Seven-Year Ban on New Federal Tertiary Institutions
The Federal Executive Council (FEC), chaired by President Bola Tinubu, has approved major funding for power sector projects and imposed a seven-year moratorium on the establishment of new federal tertiary institutions. These decisions were made during the FEC meeting on Wednesday, August 13, 2025.
Power Sector Upgrades
The FEC approved four key proposals from the Ministry of Power, totaling $34 million and N13 billion, to enhance the nation's power infrastructure. Minister of Power, Adebayo Adelabu, explained the approvals:
N13 Billion for Right-of-Way: This funding is allocated for compensation to property owners and communities affected by the routes of the Lagos Industrial Transmission Project. This project is supported by a $238 million loan from the Japan International Cooperation Agency (JICA) and is designed to provide more stable power to industrial hubs in Lagos and Ogun states.
$34 Million and N5.2 Billion for Transformers: The council approved these funds for the procurement and installation of high-capacity transformers. This equipment is intended to replace obsolete and overloaded units, which will help to stabilize the national grid, improve voltage, and increase the overall transmission capacity.
Ban on New Tertiary Institutions
The FEC also imposed a seven-year ban on the creation of new federal universities, polytechnics, and colleges of education. According to the Minister of Education, Dr. Tunji Alausa, the policy is a response to the "duplication" of institutions and the resulting degradation of the education system.
The Rationale: The minister highlighted that many existing federal institutions are under-enrolled and operate far below capacity. He cited statistics showing that in the previous year, many polytechnics and colleges of education had fewer than 100 applicants, and some had zero.
Focus on Existing Institutions: The ban is a strategic move to redirect resources toward upgrading infrastructure, expanding student capacity, and improving the quality of education at existing institutions.
Exception for Private Institutions: While the ban applies to federal institutions, the FEC approved nine new private universities that had met all necessary requirements from the National Universities Commission (NUC) after long-standing applications. However, the minister clarified that the moratorium will now also apply to future applications from private institutions to prevent a similar proliferation in that sector.
