Tinubu Signs Students Loan Bill Into Law

President Bola Tinubu, on Wednesday, signed the Student Loans (Access to Higher Education) Act (Repeal and Re-Enactment) Bill, 2024, into law. This development follows individual reviews by both the Senate and the House of Representatives of the report from the Committee on Tertiary Institutions and TETFund. The Bill sponsored by Senator representing Ekiti Central Senatorial District of Ekiti State, Bamidele Opeyemi aims to improve the execution of the Higher Education Student Loan Scheme in Nigeria by tackling issues related to the management structure of the Nigerian Education Loan Fund, applicant eligibility criteria, loan purposes, funding sources, and procedures for disbursement and repayment. Under this Bill, the Nigerian Education Loan Fund (NELFUND) would be established as a legal entity with the authority to litigate and be litigated in its own name, and it would possess the power to acquire, hold, and dispose of both movable and immovable property to fulfill its functions. In essence, the Bill enables the Fund to offer loans to eligible Nigerians for their tuition, fees, charges, and living expenses while studying in approved tertiary institutions and vocational training centers in Nigeria. In contrast to the previous 2023 Act, which placed the Fund’s administration under a Special Committee chaired by the Governor of the Central Bank of Nigeria, this Bill proposes changes in the management structure. Furthermore, the Bill eliminates the income-based eligibility criterion set by the existing law, which required an annual income of less than N500,000 for applicants or their families. The Bill also broadens the scope of eligibility, allowing students from federally or state-established tertiary institutions and government-approved vocational institutions to apply, with specific criteria to be determined by the Fund. Additionally, unlike the 2023 Act, which limited loan applications solely to tuition fees, the new Bill permits applicants to request loans to cover various institutional charges and maintenance allowances.

NANS Reacts As FG Postpones Students Loan For Again 

The National Association of Nigerian Students (NANS) has voiced discontent over the federal government’s decision to postpone the implementation of the student loan program.  The initiative, aimed at alleviating the financial burden on indigent students following the announcement of increased tuition fees in federal universities, has faced indefinite delays, as announced by the President Bola Tinubu-led administration on Tuesday. Initially conceived to cushion the impact of tuition hikes, the program’s repeated postponements have left financially disadvantaged students scrambling to find alternative means to cover their educational expenses. In response to this setback, NANS President, Pedro Chibuzo Obi, expressed frustration.  He emphasized the urgent need for dialogue between the union, the fund’s management, and the government to address the challenges obstructing the commencement of the student loan scheme. Obi underscored the importance of ensuring the program’s effectiveness and alignment with the interests of Nigerian students. He highlighted concerns regarding the ongoing academic session, noting that the delay may compromise the scheme’s ability to provide adequate support during this period. He asserted, “The delay is regrettable, but we are committed to facilitating the scheme’s prompt commencement to benefit the Nigerian student community. Despite the current academic session being halfway through, we urge swift action to ensure the program’s rollout without further delay.”

FG Postpones Launch of Students Loan

Barely 48 hours before its official launch, the Federal Government has postponed the launch of the Nigerian Students Loan Scheme indefinitely. The Executive Secretary of the Nigerian Education Loan Fund, Akintunde Sawyer, disclosed this known during an interview with ARISE NEWS on Tuesday.  According to Sawyer, the loan scheme was postponed due to some corrections that were being made around the launch. “Unfortunately, I won’t be able to commit to a specific date. We are sort of waiting to ensure that all the stakeholders are aligned to make sure that nobody is blindsided, then we can actually roll this out in a meaningful, comprehensive, wholesome and sustainable way,” he said. The proposed bill sponsored by former Speaker of the House of Representatives, Femi Gbajabiamila, was supposed to start between September and October 2023, after President Bola Tinubu, signed it into law in June 2023. The Students Loan Fund would give interest-free loans to Nigerians for higher education. Tinubu, had said the programme would begin in January 2024, after missing the October deadline. In January, Minister of State for Education, Yusuf Sununu, said at a meeting that preparations for the program were finished. This included making the Student Loan Scheme website and planning how to start the programme. Also, Tinubu told leaders of the National Association of Nigerian Students that the programme would start once they added more features, like vocational studies.

FG To Develop App For Student Loan Scheme Application

The Federal Government says it will develop an app for applications into the student loan scheme.  This is according to the Executive Secretary of the Student Loan Scheme Board Akintunde Sawyer who spoke on Monday after the board met with President Bola Tinubu in Abuja. Sawyer said the move is to ensure zero human intervention in the scheme which is expected to start this year. The development came months after Tinubu said the scheme would commence in January 2024. “By January 2024, the new student loan must commence. To the future of our children and students, we are saying no more strikes,” Tinubu said in Abuja during the National Economic Summit 2023, assuring students that the era of incessant strikes is gone. President Tinubu in celebration of June 12, Nigeria’s Democracy Day, signed the student loan bill in fulfillment of the promise he made during his campaign. The bill, sponsored by the Speaker of the 9th House of Representatives, Femi Gbajabiamila, now Chief of Staff to the President, provides easy access to higher education for indigent Nigerians through interest-free loans from the Nigerian Education Loan Fund. The funds for the programme will be domiciled in the Ministry of Education and will only be accessed by indigent students of tertiary institutions.