The Federal Government of Nigeria has concluded plans to launch the Nigerian Education Loans Fund for students in tertiary institutions just as President Bola Tinubu has directed management of the fund to expand the scope..
The Executive Secretary of Student Loan Board, Dr Akintunde Sawyerr, said on Monday in Abuja that the scheme was to eliminate the challenges faced by Nigerian youths in accessing tertiary education due to lack of funding by their parents or guardians.
According to him, the loan is a statute backed financial support provided to students for their education in both the private and government institutions, allocated for long term and short term purposes.
He said the Student Loan Act seeks to provide access to interest-free loans to Nigerian students in tertiary institutions and it as well, establishes an Education Loan Fund to help Nigerians fund their higher education.
Sawyerr said that the loan would not only be applicable to students going to formal educational institutions but also to those going into technical, teaching and vocational schools.
For accessibility and accountability, Sawyerr said the application procedure would be devoid of human interference.
“In applying for this loan, there is zero human intervention.
“In other words, there is an app, through which applicants will log into a portal to input certain pieces of information to ascertain their eligibility,’’ he said.
Similarly, Mr Zaccheus Adedeji, Chairman of the Federal Inland Revenue Service, said that the scheme would be funded with the Education Tax under the Service.
The loans, he said, would allow more youths to enjoy quality education in line with the campaign promises of President Bola Tinubu.
The Students Loan Act is Tinubu’s second piece of legislation signed into law within two weeks of his assumption of office in May 2023.
Meanwhile, President Tinubu has directed the management of the Nigeria Education Loan Fund (NELFUND) to expand its focus area by extending interest-free loans to Nigerian students interested in skill-development programmes.
The President issued this directive at the State House on Monday after a briefing from Mr. Akintunde Sawyerr, Executive Secretary of NELFUND, on the build-up to the launch of the programme later in the month.
The President said it is important for the scheme to accommodate those who may not want to pursue university education, noting that skill acquisition is as important as obtaining undergraduate and graduate academic qualifications.
“This is not an exclusive programme. It is catering to all of our young people. Young Nigerians are gifted in different areas.
“This is not only for those who want to be doctors, lawyers, and accountants. It is also for those who aspire to use their skilled and trained hands to build our nation.
“In accordance with this, I have instructed NELFUND to explore all opportunities to inculcate skill-development programmes because not everybody wants to go through a full university education,” he said.
President Tinubu emphasized the need for equity and inclusivity in the management of the programme, stating: “No matter how economically challenged you are, accredited and qualified students will and must have access to this loan to advance their education in higher institutions. There is no compromise in our commitment to the disadvantaged citizens of this nation.”
In his presentation to the President, Executive Secretary of the Fund, Mr. Akintunde Sawyerr, said the loan application process will be technology-driven, limiting human interface and “eliminating any possibility of maladministration in the programme.”
“By design, this is a perpetual programme and will not terminate. The funds, earmarked for bona-fide Nigerian students, will be disbursed directly to the institutions in the initial phase through electronic transfer.
“Our students will be catered to in a way that bypasses human interference through the full utilization of available technological platforms, in adherence to Your Excellency’s stated objectives,” he said.
He also said NELFUND has developed a robust risk-mitigation mechanism to address potential risks that may arise from the programme.
Speaking on the funding mechanism of the programme, Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), said funding sources have been made available to ensure the smooth take-off and sustenance of the programme.
“Mr. President is permanently solving the problem of funding for education in Nigeria. By the directive of the President, the Education Tax Fund is being reviewed to additionally cater to the needs of our university students across all local government areas in the country as they seek to access vocational and traditional university education. Funding for the programme will be adequately covered,” he said.