In a groundbreaking development on Nigeria’s Democracy Day, President Bola Tinubu officially signed the Student Loan Bill into law, marking a significant milestone in the nation’s commitment to providing affordable education opportunities.
The Act which was sponsored by the immediate former Speaker of the House of Representatives Femi Gbajabiamila, aims to revolutionize educational opportunities for Nigerian students and shape the future of the country’s education landscape.
Reacting to the signing of the Bill, Gbajabiamila who is now the Chief of Staff to the President tweeted: “I am excited that President @officialABAT has signed the “Student Loan (Access to Higher Education) Bill” into law. I sponsored this Bill in the House of Representatives, confident it will assist indigent students and families in grasping the opportunities that higher education can provide”.
Under the Act, the Nigerian Education Bank is established to manage and oversee the loan disbursement process.
The Bank assumes the responsibility of collecting contributions and other prescribed funds, holding them in a dedicated fund, and ensuring their efficient distribution to eligible applicants.
Contributions to the fund include interests from deposits, education bonds, education endowment fund schemes, and a percentage of taxes, profits from oil and minerals, as well as other sources of revenue.
By facilitating access to funds for tuition fees, the Bank aims to alleviate financial burdens and enhance educational opportunities for students across the country.
To access the loan, students must fulfill certain requirements, including first securing admission into any public Nigerian university, polytechnic, College of Education (COE), or TVET school. Furthermore, the annual income of the applicant or their family should not exceed N500,000.
In addition, two guarantors are required, who must be civil servants with a minimum of level 12 years in service, a lawyer with at least 10 years of post-call experience, a judicial officer, or a Justice of Peace.
Each guarantor is also required to provide two passport photographs, details of their employment, and evidence of their association with the named organization.
Self-employed guarantors must furnish information about their registered business with the Corporate Affairs Commission or another relevant authority, along with their banking details.
Institutional efficiency is crucial to the loan application process and each institution must ensure that all applications from their respective schools reach the Bank within 30 days after the close of admissions for the academic year.
The Act further outlines that the processing and disbursement of loan applications should occur within 30 days of reaching the Bank.
These applications must also be forwarded to the Minister for approval within the same timeframe, emphasizing the importance of timely processing to expedite loan delivery.
The repayment terms outlined in the law are designed to ensure the sustainability of the loan program and beneficiaries will commence repayment two years after successfully completing the National Youth Service Corps program.
The repayment process entails a direct deduction of 10 per cent from the beneficiary’s salary at the source by their employer, or if self employed, 10 per cent of their total monthly profit to the designated Students loan account prescribed by the Bank.
The new law has been hailed as a progressive initiative and an embodiment of government’s commitment to empowering the younger generation and broadening their educational horizons.