The Nigerian Education Loan Fund announced on Wednesday that it will start a trial phase of the student loan initiative with students from public higher education institutions.
This will involve students from federal and state universities, polytechnics, and colleges of education.
It also anticipates that President Bola Tinubu will appoint a chairperson, a Managing Director, and two Executive Directors as part of its executive management team in the near future.
The Fund's spokesperson, Mr. Nasir Ayitogo, confirmed this on Wednesday, referencing the Student Loans (Access to Higher Education) Act (Repeal and Re-Enactment) Bill, 2024, signed into law by Tinubu on the same day.
Ayitogo mentioned that the President is expected to launch the initiative after appointing qualified individuals into the positions outlined by the new law.
The executive bill was titled “A Bill for an Act to Repeal the Students Loans (Access to Higher Education) Act, 2023 and Enact the Student Loans (Access to Higher Education) Bill, 2004 to Establish the Nigerian Education Loan Fund as a Body Corporate to Receive, Manage and Invest Funds to Provide Loans to Nigerians for Higher Education, Vocational Training and Skills Acquisition and for Related matters.”
It was signed in the presence of the leadership of the National Assembly, ministers and major stakeholders in the education sector.
This followed separate considerations by both the Senate and the House of Representatives of the report of the Committee on Tertiary Institutions and TETFund.
The newly-passed law allows for the appointment of a Chairperson of the fund, a Managing Director and two Executive Directors of Finance and Operations each to “assist the Managing Director in performing his duties.”
The appointees “shall hold office for five years,” the Act read.
The new Act also made the loan fund a corporate entity with the ability to enter contracts, including loan agreements with applicants, or to initiate enforcement actions to recover loans from beneficiaries; provisions it lacked hitherto.
“Right now, with the President’s approval of the new bill, it means there will be new leadership. There will be a managing director, as opposed to the previous law's Executive Secretary. And there will also be two executive directors.
“So, we await the President to make these new appointments before we can start anything. Before the implementation, those appointments will have to be in place.
“There must be a Chairperson who will be appointed by the President,” said Ayitogo.
Asked if the new provision covers students in public and private institutions, he said, “For the trial phase, it is only for public institutions.”
On the number of public institutions to enjoy the trial scheme, he explained, “The target for this phase of the loan are students of federal and state universities, federal and state polytechnics and federal and state colleges of education. Whoever desires the loan will apply.
“When you need the loan, apply and you will get it if you meet the requirements.”
But, they haven't decided on a date to start the programme yet.
After agreeing to the new law on Wednesday, Tinubu thanked the National Assembly for quickly considering it, affirming that his administration was dedicated to improving the skill levels of working-age Nigerians.
He said, “I have just signed a bill making the student loan effective. First of all, I want to thank members of the National Assembly for promptly dealing with this bill for the benefit of Nigerian children, acknowledging that education is the key to effectively fighting poverty.
“We are committed to making sure that education is given the attention it needs in the country, including skills development programmes.
“This is to make sure that no one, no matter how poor they are, is left out from getting good education and the chance to build their future.”
Speaking to those in the room, the President said, “We are here because we are all educated and were supported.
“In the past, we have seen a lot of our children leave college and miss out on opportunities.
“That's not the case anymore, the standards and the control are there for you to apply no matter who you are as long as you are a Nigerian citizen.”
On June 12, 2023, Tinubu signed the Access to Higher Education Act, 2023 into law to enable indigent students to access interest-free loans for their educational pursuits in any Nigerian tertiary institution.
The move was in “fulfillment of one of his campaign promises to liberalise funding of education,” a member of the then Presidential Strategy Team, Dele Alake, said.
The Act, also known as the Students Loan Law, also established the Nigerian Education Loan Fund to handle all loan requests, grants, disbursement, and recovery.
Even though the government initially said the scheme would start in September, it faced many delays and was eventually postponed indefinitely in early March.
The Presidency had linked the delay to Tinubu’s instruction to expand the scheme to include loans for vocational skills.
After getting briefed by the NELFUND team led by the Minister of State for Education, Dr Yusuf Sununu, on January 22, the President had directed the Fund to give interest-free loans to Nigerian students interested in skill-development programmes.
Tinubu made his decision based on the need for the scheme to include those who may not want to go to university, noting that acquiring skills is as important as getting undergraduate and graduate academic qualifications.
“This is not just for those who want to be doctors, lawyers, and accountants. It is also for those who want to use their skilled and trained hands to build our nation.
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 line with this, I have instructed NELFUND to explore all opportunities to include skill-development programmes because not everybody wants to go through a full university education,” he had said.
The Minister of Education, Professor Tahir Mamman, argued that the new law not only offers eligible candidates the chance to get an education but also equips them with vocational skills for their economic sustenance.
"We would like to express our gratitude to the President for his kindness and dedication to the underprivileged, who benefit from this program.
"Now, students will no longer struggle to fund their education, both at the university level and for those pursuing vocational training. This is a momentous day for the country," Mamman stated.
Meanwhile, Lucky Emonefe, the President of the National Association of Nigerian Students, thanked President Tinubu for fulfilling his commitment to providing educational opportunities for young Nigerians through the student loan program.
"This is praiseworthy. As Nigerian students, we are delighted to witness the President's dedication to improving education. Today, the entire education system, especially the Nigerian students and their parents, is elated that even children from less privileged families can access quality education in Nigeria.
"We have observed the President's dedication during the bill signing today, which demonstrates that the President is a pioneer of modern education in Nigeria and the instigator of this bill.
"This will bring joy to Nigerian parents, and we hope that those entrusted with this responsibility will effectively execute it to fulfill the President's vision and mission of ensuring that no Nigerian student misses out on education due to school fees," Emonefe stated.
The attendees at the brief signing ceremony at the State House included the President of the Senate, Godswill Akpabio; Deputy Senate President, Jibrin Barau; the President’s Chief of Staff, Femi Gbajabiamila; Minister of State for Education, Yusuf Sununu; and the Minister of State for Youth Development, Ayodele Olawande.
