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Nigeria’s student loan bill becomes law

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By Abiodun Okunloye

Individuals from different backgrounds now have access to quality education.

President Bola Tinubu has officially approved the Student Loan Amendment Bill of 2024, effectively repealing and re-enacting the Student Loans (Access to Higher Education) Act. The decision followed thorough reviews and discussions by the Senate and the House of Representatives based on the recommendations of the Tertiary Institutions and TETFund Committee. Tinubu reassured that every Nigerian, irrespective of their background, would have access to quality education, emphasising the importance of providing equal opportunities for all to secure a promising future. This remark was made during the bill signing event at the State House in Abuja.

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In the presence of the National Assembly leadership, ministers, and key Education stakeholders, the new executive bill was signed. This bill repeals the Students Loans (Access to Higher Education) Act of 2023 and establishes the Student Loans (Access to Higher Education) Bill of 2004. It also creates the Nigerian Education Loan Fund as a corporate entity responsible for receiving, managing, and investing funds to provide loans for higher education, vocational training, skills acquisition, and other related purposes. The Senate and the House of Representatives thoroughly reviewed the report from the Committee on Tertiary Institutions and TETFund before taking separate decisions.

Stakeholders recognise education as a key weapon against poverty.

Tinubu expressed gratitude to the National Assembly for swiftly considering the legislation, stating that the government is committed to enhancing the expertise of Nigerian citizens. He expresses gratitude to the National Assembly for their swift action on this bill, prioritising the well-being of Nigerian children and recognising education as a key weapon against poverty. It is their commitment to prioritise education, including skill development programs, for the betterment of the nation. They have all been beneficiaries of education and support, which is why they are gathered.

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Previously, many young people withdrew from Higher Education and abandoned their chance. However, this is no longer the case as the criteria and regulations are in place for anyone, regardless of their background, to apply as long as they are a citizen of Nigeria. Tinubu took the significant step on June 12, 2023, by officially approving the Access to Higher Education Act, 2023. This Legislation allows students from low-income backgrounds to obtain interest-free loans for their studies at Nigerian universities.

NELFUND will manage and administer the initiative.

According to Dele Alake, a member of the Presidential Strategy Team at the time, this action marked a crucial fulfilment of Tinubu’s commitment to improving access to education through financial support. The Nigerian Education Loan Fund was created by The Act, which is commonly referred to as the Students Loan Law, in order to manage the application, approval, distribution, and repayment of loans. Despite the government’s original plan to introduce the program in September, various setbacks caused a delay, ultimately resulting in a postponement without a set date in early March.

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On January 22, the President was informed by the NELFUND team, headed by Dr. Yusuf Sununu, about providing interest-free loans to Nigerian students looking to pursue skill-development programs. This directive was given after a briefing from the Minister of State for Education. The recognition of the diverse talents and interests of young Nigerians drove Tinubu’s decision to include skill acquisition in the scheme. He emphasised the importance of providing opportunities for those who may not wish to pursue a university education, highlighting that developing practical skills is equally valuable as obtaining traditional academic qualifications.

Related Article: Reps pass student loan amendment bill 2024

The programme aims to cater to all young people in Nigeria, regardless of their educational preferences or strengths in various areas. This opportunity is not limited to those pursuing careers in medicine, law, or finance. It is also open to individuals who have ambitions to contribute to the development of the country through the use of their expert craftsmanship. He has directed NELFUND to investigate every avenue for implementing skill-building initiatives as not everyone is interested in pursuing a traditional university degree.

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