President Bola Tinubu on Monday, signed the Student Loan Bill into law; setting up access to loans for students who come from economically disadvantaged backgrounds.
The official announcement was made on Monday by the spokesperson for the Federal Government, Mr. Dele Alake. According to Alake, the funds allocated for the students’ loans will be held within the Ministry of Education and will exclusively be available to financially disadvantaged students attending tertiary institutions.
The Student Loan Bill dubbed; “A Bill For An Act To Provide For Easy Access To Higher Education For Nigerians Through Interest-free Loans From The Nigerian Education Bank,” was sponsored by the Speaker of the 9th House of Representatives, Femi Gbajabiamila, in 2016, successfully passed the third reading in the House two weeks ago.
Tekedia Mini-MBA edition 14 (June 3 – Sept 2, 2024) begins registrations; get massive discounts with early registration here.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
The bill outlines provisions for interest-free loans to support economically challenged Nigerian students. It said that beneficiaries are those whose parents and guardians earn below N500,000 per annum.
The newly enacted law aims to facilitate accessible higher education for financially disadvantaged Nigerians through interest-free loans sourced from the Nigerian Education Loan Fund, but it carries two years imprisonment for defaulters, N500,000 fine or both.
However, Nigerians don’t seem to be excited about the signing of the bill for several reasons.
In December last year, when the bill was passed by both chambers of the National Assembly, the Academic Staff Union of Universities (ASUU) criticized it, alleging that it was an attempt by the Nigerian government to ‘systematically’ halt the funding of public universities.
“We find it troubling that the proponents of the policy are so eager to foist it down the throat of Nigerians when they have done more to push the working people of this country into poverty through sheer incompetence in handling the economic fortunes of our nation,” the statement issued by the union reads in part.
Nigerians on social media have expressed concerns about factors that could derail the implementation of the Students Loan Act.
“The Government could have solved the massive unemployment crisis the country is facing before signing the Student Loan Bill.
“Taking a loan just to graduate and join the long list of unemployed graduates? I’m sorry but this is an excellent bill signed at the wrong timing “IMHO”,” Asiwaju Lerry tweeted.
The Government could have solved the massive unemployment crisis the country is facing before signing the Student Loan Bill.
Taking a loan just to graduate and join the long list of unemployed graduates? I’m sorry but this is an excellent bill signed at the wrong timing “IMHO”.
— LERRY (@_AsiwajuLerry) June 12, 2023
“This student loan scheme Tinubu just signed simply means subsidy for Tertiary education will be removed. Anyone that wants to go to school should prepare their 100k (minimum) per session/semester or queue up to obtain a Tinubu student loan. Those in charge will make money. NIRSAL 2.0”
Someone seems to agree with ASUU that the Student Loan Bill is a ploy by the government to stop funding tertiary education.
Taraba state uni for instance already pays school fees per semester (not per session) and I believe others will also adopt this approach to to generate more revenue through school fees alone.
Tunubu is not letting the poor breath. He wants to snatch our breath, our lungs ??
— Kelvin Odanz (@MrOdanz) June 12, 2023
So what if students that took the loan aren’t able to get a job after completion of NYSC?
A Twitter user attempts to answer the question by referencing Tinubu’s campaign promise to recruit 50 million youths into the Nigerian military to fight insecurity.
The "Operation Join the Army" Bill will then be signed. That means, if you remain unemployed for two years after school… you will be mandated to join the Army. Don't do it, just borrow money from palmpay to pay the loan, then borrow money from egbon adugbo to pay palm pay. https://t.co/W61FEsgAja
— Chicken Catcher ? (@EtuboDragon) June 12, 2023
The Student Loan scheme was part of Tinubu’s campaign promises, but the assent of the bill has not been welcomed with excitement due to the high rate of unemployment in Nigeria. Although currently the largest economy in Africa, Nigeria has 33.3% unemployment rate.
In an attempt to prove that the Student Loan Act will fail, some of its critics have referenced the United States, which although has less than a 4% unemployment rate, still struggles to manage the crisis emanating from students loan.
What cannot be condemned in this country does not exist. I think this is a welcome development, but has to be thoroughly monitored to achieve its intended result.