The Federal Government of Nigeria is set to introduce a student loan program aimed at increasing access to higher education. The program, expected to begin between September and October 2023, will provide interest-free loans to financially disadvantaged Nigerian students. The Student Loan Bill, signed into law by President Bola Tinubu, was sponsored by Speaker Femi Gbajabiamila and will be administered through the Nigerian Education Loan Fund.
To ensure the efficient implementation of the loan scheme, a committee comprising ministries and agencies has been approved by President Tinubu. The committee’s meeting is scheduled for June 20, and its mandate is to establish a specialized bank called the Higher Education Nigerian Bank. This new bank will handle loan disbursement and management, actively functioning as a regular banking institution. By creating a separate bank, the government aims to prevent previous loan recovery challenges and provide equitable access to students in both private and public schools.
The government intends to employ a tracking system to facilitate the smooth operation of the loan scheme. Loan recovery will only commence once recipients secure employment, demonstrating the government’s commitment to easing the financial burden on students. The loan program’s implementation is a significant stride towards realizing President Tinubu’s promise of enhancing access to higher education, and it underscores the government’s focus on job creation and providing opportunities for all Nigerians.