President Bola Ahmed Tinubu had yesterday signed a student loan Bill into law, thereby guaranteeing students interest-free credit for their studies. The president during his campaign in the build-up to electioneering had promised that if elected into office will propose a student loan Act that will guarantee Nigerian indigenes have access to loan facilities for study. Accordingly, less than a month into office, president Tinubu ensured that such a promise has come to pass as described by one of his aid, Dele Alake, it was the “fulfillment of one of his campaign promises to liberalize funding of education.” The Students Loan Act is Tinubu's second piece of legislation signed into law after assuming office on 29th May 2023. The bill is to let Nigerian students have access to interest-free loans to study which will be payable after the study.
Although, the Bill was sponsored by Tinubu’s Chief of Staff who was also a former speaker House of Reps in the 9th Assembly, Femi Gbajabiamila on May 25th, 2023, and has scaled through a third reading. While briefing newsmen, Mr. Alake, for every student to have access to such a loan must prove that they are an indigene of Nigeria.
Accompanied by Permanent Secretary Ministry of Education, Mr David Adejoh, Alake said, “We’re very happy to announce to you that today the President, His Excellency, Bola Tinubu, signed into law the Student Loans Bill. “This is a promise made during the presidential campaign by the then-candidate, His Excellency Bola Tinubu, that he will bring back the student loans issue onto the front burner.
Alake added, “And today, that promise he made has been kept. He has just signed that bill into law, which henceforth would allow or enable our indigent students to access Federal Government’s loans to fund the educational pursuit or career.” He explained that the effort was to put Nigeria at par with other developed climes where such are tenable. As it will boost Nigerian youth a zeal for the educational quest, he added.
Though, he revealed that it comes with some conditions before they are accessible to the beneficiaries. Meanwhile, he explained that “Of course, there are committees to be set up. The members of committees will be drawn from various bodies to superintend over the efficient and proficient disbursement of this facility”.
The procedure for its application would be worked out by the committee in-charged he disclosed. In his remark, the Permanent Secretary, of the Ministry of Education, clarifies that by implication, the Act has automatically set the present federal scholarship board into loan boards that will be offering students varying degrees of study loans.
Adejoh said, “Today, what the President has done goes beyond the symbolism. It is a demonstration of intent in terms of how he wants to handle education as he progresses in his presidency. Once the bill has been signed, that is the most important thing. A bill tells you what should be done. The how is what we are going to put together.
“What we have now is that nobody shall say money did not allow him to go to school,” he added. However, reacting to the new law, the Academic Staff Union of the Nigerian Universities, ASUU, while speaking through its National President, Prof. Emmanuel Osodeke, kicked against the bill as discriminatory against the children of the masses.
According to the ASUU president, “The union will react soon but everyone knows our position on student loans because you will end up encumbering the children of the poor with loans and debt after graduating. This is discriminatory. If what I read online is correct, it said it is only for children whose parents earn at least N500,000 per annum. That means if your father earns more, you won’t benefit.”
Similarly, his counterpart, the President of the Academic Staff of the Nigerian Polytechnic, ASUP, Mr Anderson Ezeibe said, “I have not studied the bill and we don’t want to react on the surface. But I have seen one area that will not be practicable. “It says that students should refund the money two years after NYSC. But what is the provision for someone who is not working after NYSC? And will they all get jobs immediately after NYSC?” However, on their side, the National Association of Nigerian Students, NANS has hailed the president for approving such a bill, describing it as a way forward for education.
In a statement made by the student available to the press said, through its coordinator NANS zone D, Adejuwon Emmanuel, he faulted the repayment terms. In the statement, it says, “Without saying much, student loan bill is a way forward to the educational system in Nigeria, because it will assist a student whose parent cannot afford to pay tuition fee to be able to pay with the loan.
“But as good as this is, there are some questions that need to be answered by the government. The ultimatum for repayment is not feasible. As we all know that there is no work anywhere and most graduates don’t get work immediately, how will they pay back? How will it work when most of our graduates do not get jobs? Is there any plan or opportunity for those that have no work two years after NYSC?”
In his reaction, a former Deputy vice chancellor at the University of Uyo, Prof. Ini Uko said during an interview, it was a laudable achievement. He explained, “Well, this means that tuition fees will go up. The subsidy on tertiary education will be removed. Vice-chancellors will now be able to introduce tuition fees. This is a good initiative. I am a beneficiary of a student loan and, of course, the people who benefit from it will have to pay back.
He added the truth is that we have to stop pretending that the government alone can continue to fund tertiary education. It is not possible.”
