The federal government has announced its proactive steps towards the commencement of student loans between September and October 2023. Andrew David Adejo, the Permanent Secretary of the Federal Ministry of Education, disclosed this during a press briefing in Abuja.
He revealed that President Bola Tinubu has already authorized a committee comprised of ministries and agencies to oversee the realization of the recently approved Students Loan Bill.
Last week, Tinubu fulfilled his campaign promise by signing the Student Loan Bill into law.
The bill, which was sponsored by the Speaker of the 9th House of Representatives, Femi Gbajabiamila, aims to provide interest-free loans to financially disadvantaged Nigerian students.
The Permanent Secretary emphasized that the legislation seeks to ensure accessible higher education for underprivileged Nigerians through interest-free loans from the Nigerian Education Loan Fund.
Adejo clarified, “The bill’s purpose is to guarantee that every Nigerian has access to higher education through the establishment of the Higher Education Nigerian Bank. Learning from past mistakes, this bank will not only process loan applications but will also function as a regular bank to ensure the disbursement of loans, as we have experienced loan recovery challenges in the past.”
He added, “Although the Act provides us with the necessary framework, the President has approved the committee consisting of various ministries and agencies. Their first meeting is scheduled for June 20th. The President has also directed that loan recipients should be identified by September to October of the 2023/2024 academic session. Therefore, we have a critical timeline to finalize the loan disbursement process.”
The Permanent Secretary further revealed that the government plans to establish a specialized bank to handle the loan operations and implement an efficient tracking system for the loan scheme.
The loans will be available to students in both private and public schools, and a separate bank will be created to cater to the unique requirements of the program.
Adejo clarified, “We will create a new bank specifically for this purpose, as existing banks cannot be utilized. We aim to ensure that students attending private schools are not excluded since they pay tuition fees. The loan is intended to support educational pursuits and repayment obligations only begin once the recipient secures employment.”
He commended President Tinubu’s commitment to job creation, stating, “Our current President is a job creator, drawing from his private sector experience.He has provided us with policy direction, and job creation is among his top priorities, although it is not possible to generate jobs for everyone.”
As of June 12, only three individuals have reviewed the Act—the President, the current Chief of Staff, and the Permanent Secretary himself.
Adejo explained that the bill has been signed into law, but the Act will be available once it is transmitted to the Ministry of Justice for gazetting.
