The House of Representatives in Nigeria has proposed a three percent increase in annual revenue generation to make student loans more functional. This proposal comes as part of President Tinubu’s commitment to improving access to higher education for Nigerian students. The ad hoc committee on Students Loan Fund and Access to Higher Education made the proposal during a public hearing in Abuja. The committee chairman, Terseer Ugboh, stated that the current one percent allocation from federal government revenue would not be enough to cover the large number of students seeking loans. The committee also emphasized the need for transparency and technological enablement in the loan system. The Director of Legal Services of the Central Bank of Nigeria supported the proposal and suggested a supplementary budget for the scheme’s implementation. The Permanent Secretary of the Federal Ministry of Education assured that the scheme would begin in the 2023/2024 academic session.
President Tinubu’s commitment to making student loans functional and beneficial to Nigerian students has led to a proposal by the House of Representatives to increase annual revenue generation by three percent.
The ad hoc committee on Students Loan Fund and Access to Higher Education, in a meeting recently, suggested raising the student loan percentage from one percent to three percent of the annual revenue generated in the country, as announced by the Federal Government.
The Chairman of the ad hoc committee, Terseer Ugboh, made this known during a public hearing in Abuja. The hearing aimed to assess the progress made by the presidential committee tasked with removing obstacles to accessing the loan fund.
Ugboh stated, “We believe that one percent of the Federal Government Revenue, as stated in the act, would not be sufficient to cover student loans for a year considering the large number of students seeking admission each year and those currently in school who may also apply for loans to finance their education.”
“We propose increasing the requirement to three percent. We urge the Ministry of Education to consider this increase in funding,” he added.
He also highlighted the importance of transparency in the loan scheme and called for technological advancements to eliminate issues of favoritism.
Kofo Alada, speaking on behalf of the Technical Committee and the Central Bank of Nigeria, supported the need for a supplementary budget for the scheme’s implementation, assuring that a target had been set for November this year.
The Permanent Secretary of the Federal Ministry of Education, David Adejoh, confirmed that the student loan scheme would commence in the 2023/2024 academic session, which may start in October or December this year.
Adejoh stated, “The loan will start in the 2023/2024 academic session, most likely in October or November, depending on the school. Once the technical committee finalizes their work, we will present a clean bill to the National Assembly, and I am confident we can begin the loan program.”