The Nigerian government has announced that the implementation of the Students Loans Scheme will commence during the 2023/2024 academic session.
The Permanent Secretary of the Federal Ministry of Education, David Adejo who made the disclosure said specifically that the government had set a September 2023 commencement date.
Speaking further, Adejo debunked rumours that federal universities were increasing their charges because of the loan scheme, stating that the recent increase in charges by some federal universities in the country was unfortunate, adding that no federal University in the country was allowed to collect tuition fees from students.
On the take-off of the students’ loan scheme, the permanent secretary disclosed that President Bola Tinubu has directed the completion of necessary work on the modalities for its implementation.
Adejo further stated that the president has established a coordinating committee, with the Chief of Staff, Femi Gbajabiamila serving as the chairman, adding that the committee comprises key entities such as the Central Bank of Nigeria, the Federal Budget Office, the Ministry of Education, the Ministry of Finance, and others.
He noted that the committee has additionally established a technical team tasked with establishing a solid framework for initiating the program and addressing any legal obstacles that could hinder Nigerians’ access to the loan.
Adejo reiterated that tuition would not be affected in federal universities due to the scheme as the government didn’t approve such.
He said, “What they collect is charges to cover the cost of accommodation, ICT, and power, among others. It is the Governing Councils of the Universities that have the power to approve such charges for them.
“The only university that increased charges after the signing of the student loans act is the University of Lagos. They came to the Ministry with a proposal to Increase their charges because all Governing Councils were dissolved and we gave them approval.
“Immediately that was done, there was a resolution from the House stopping the increase of fees and the president also gave a directive stopping any increase in fees and that is where it is, even though several others have brought their proposal.”
Many Universities Unable To Meet Running Costs
Speaking further, Adejo revealed that many universities are struggling to meet their running costs including electricity bills hence the push by some of them to increase charges.
He said, “For example, we had to bail out Ahmadu Bello University, Zaria with about N1 billion to pay its electricity bill. The school just resumed academic sessions because they were in darkness.
“They were supposed to build theatres and we told them, you cannot build theatre when you are in the dark because you need power to operate.”
How The Student Loan Will Work
The director of Legal Services of the Central Bank of Nigeria who represented the Acting Governor of the Central Bank, Kofo Salami Alada said the student loan was being designed to be technology driven such that physical contact and paper works would be eliminated.
He added that the CBN will work with the various tertiary institutions that will be assigned unique codes, the Joint Admission and Matriculation Board and other bodies involved in tertiary education in the country to make the process much easier.
He said the CBN will not be responsible for the funding of the exercise, adding that its responsibility will be the bankers to the fund as the funds will be provided solely by the government.
