President Bola Tinubu has authorized the management of the Nigeria Education Loan Fund to provide interest-free loans to Nigerian students engaged in skill-development programmes.
This came after NELFUND’s Executive Secretary, Mr. Akintunde Sawyerr, briefed the audience on the program’s upcoming debut later this month.
Ajuri Ngelale, Special Adviser to the President on Media and Publicity, stated this in a statement released on Monday titled ‘President Tinubu urges expansion of the student-loan program to include skill development.’
According to the statement, Tinubu based his decision on the need for the system to accommodate those who do not choose to pursue a university degree, emphasizing that skill acquisition is just as vital as gaining undergraduate and graduate academic credentials.
Speaking on the student loan scheme, Tinubu stated that “This is not an exclusive program. 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 programs because not everybody wants to go through a full university education,” he said.
On June 12, 2023, President Bola Tinubu signed the Student Loan Bill into law. Dele Alake, a member of the then-Presidential Strategy Team, explained that the action was in “fulfillment of one of his campaign promises to liberalize education funding.” The law allows impoverished students to get loans at interest-free rates.
The President declared the 29th session of the annual Nigeria Economic Summit in Abuja open on October 23, 2023, and stated that “by January 2024, the new Student Loan Programme must commence. To the future of our children and students, we’re saying no more strikes!”
However, as January approaches its last week, questions about the policy’s timely implementation persist in the minds of students, parents and stakeholders.
Speaking on Monday, President Tinubu emphasized the importance of equality and inclusivity in the program’s management, saying, “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 Tinubu, the Executive Secretary of the Fund, Mr. Akintunde Sawyerr, stated that the loan application procedure will be technology-driven, limiting human interaction and “eliminating any possibility of maladministration in the program.”
He said, “By design, this is a perpetual program 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.”
Sawyerr further stated that NELFUND had created a solid risk-mitigation framework to address potential program risks.
Speaking on the program’s funding mechanism, Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service, stated that financial sources such as the Education Tax Fund had been made available to ensure the program’s successful launch and continuation.
“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 program will be adequately covered,” he said.
