FGN set to launch student loan program in September/October 2023, covering private, public students
The Federal Government of Nigeria (FGN) is working out modalities to commence student loans in September/October 2023.
The Permanent Secretary of the Federal Ministry of Education, Andrew David Adejo, during a press conference held in Abuja on Wednesday disclosed this information.
President Bola Tinubu fulfilled his campaign promise by signing the Student Loan Bill into law.
According to Adejo, the bill, sponsored by the Speaker of the 9th House of Representatives, Femi Gbajabiamila, “is to make sure that every Nigerian has access to higher education through what we called the Higher Education Nigerian Bank.”
Adejo further explained, “Learning from past mistakes, the bank is not going to be the type that will sit down and be collecting application loans. It will also perform normal banking functions and make sure loans are given because we had cases of loan recovery in the past.”
He revealed that President Tinubu has approved the formation of a committee comprising ministries and agencies to ensure the success of the loan scheme.
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“The president has directed that by September to October this 2023/2024 academic session, he wants to see recipients of these loans,” Adejo added.
To ensure efficient operation of the loan scheme, the government plans to establish a specialized bank dedicated to the loans.
Adejo stated, “We are not going to use existing banks. We are going to create a new bank that will address this because we can’t use an existing bank.”
He emphasized that the loan program will cover both private and public schools.
“We don’t want to make it that only people who want to go to public schools will benefit from [the program]. Private schools are paying tuition, so you have to give them the opportunity,” Adejo explained.
“The loan is for you to get an education program and get employed; then you start paying back. The loan recovery does not start until you get employed,” he clarified.
Adejo praised President Tinubu as a job creator, stating, “Our current president today is a job creator from his experience in the private sector, and he has given us policy direction. Job creation is one of the things he is going to do, even though you cannot create jobs for everybody.”
Regarding the Student Loan Bill, Adejo mentioned, “As of June 12, only three people have seen the Act, which is the president, the current Chief of Staff, and myself. What you have seen is the bill. The president has assented to the bill. Let us wait to see the Act, and you will get the Act when it is transmitted to the Ministry of Justice to produce a gazette.”
