On June 12, 2023, President Bola Tinubu granted approval to the Student Loan Bill, a groundbreaking initiative facilitating Nigerian students’ access to interest-free loans. Proposed by the outgoing Speaker of the House of Representatives, Femi Gbajabiamila, the bill underwent its second reading at the lower house on May 23, 2023, according to reports from The PUNCH.
The establishment of an education bank has ignited discussions surrounding the potential implementation of tuition fees in federally-owned tertiary institutions.
In response, several institutions have already declared plans for fee adjustments, positioning this move as a strategic response to address the funding gap prevalent in higher education.
In accordance with the bill’s provisions, prospective loan applicants must fulfill specific criteria. Eligibility requires enrollment in a public Nigerian University, Polytechnic, College of Education, or any TVET school. Their income or family income should not exceed N500,000 per annum, and the provision of guarantors meeting predefined criteria is mandatory.
Applicants with a history of loan default, exam malpractice, felony, drug offenses, or those with defaulting parents will not be considered. Meeting these conditions necessitates the submission of loan applications through the Students Affairs Office of each institution. These submissions should be accompanied by a cover letter signed by the institution’s Vice-Chancellor, Rector, or head, along with the Student Affairs.
Regarding repayment terms, beneficiaries will commence repayment two years after completing the National Youth Service Corps program. The repayment process involves a direct deduction of 10% of the beneficiary’s salary by the employer. For self-employed individuals, a monthly remittance of 10% of their total profit to the student loan account is required, with stringent consequences for defaulting on these regulations.
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