On Wednesday, the federal government announced plans to launch an interest-free student loan scheme between September and October 2023.
The Permanent Secretary, Federal Ministry of Education, Andrew David Adejo, revealed this during a press briefing in Abuja.
He confirmed that President Bola Tinubu has sanctioned a committee consisting of various ministries and agencies to expedite the implementation of the recently endorsed Student Loan Bill.
The Student Loan Bill, which was sponsored by the Speaker of the 9th House of Representatives, Femi Gbajabiamila, was signed into law by President Tinubu last week, keeping a campaign promise.
This legislation is set to facilitate easy access to higher education for low-income Nigerians through interest-free loans from the Nigerian Education Loan Fund, explained Adejo.
“The bill is to ensure that every Nigerian has access to higher education through what we called the Higher Education Nigerian Bank,” Adejo noted.
In order to improve the efficiency of the loan scheme, the government will establish a specialized bank and tracking system.
The bank will not only process loan applications but also perform standard banking functions.
According to Adejo, “The president has also directed that by September to October of this 2023–2024 academic session, he wants to see recipients of these loans. So it is a serious task for us, and we have to devise the process for people to get the loan between now and then.”
Both private and public school students will be eligible for these loans.
“We don’t want to make it that only people who want to go to public schools will benefit from this; private schools are paying tuition, so you have to give them the opportunity,” Adejo elaborated.
A key feature of the loan scheme is that repayment will only begin once the recipient secures employment.
Adejo commended President Tinubu’s emphasis on job creation and policy direction, as drawn from his private sector experience.
As of June 12, the Act has only been seen by the president, the chief of staff, and the permanent secretary himself.
Adejo advised the public to wait for the official act’s gazette to be released through the Ministry of Justice.
