The Ad-hoc Committee on Students Loan Fund and Access to Higher Education in the House of Representatives has announced its intention to propose a 3% increase, as opposed to the initial 1%, for student loans funded by annual revenue, as recently announced by President Bola Ahmed Tinubu.
During a public hearing aimed at assessing the progress of the presidential committee established to eliminate legal obstacles obstructing Nigerian students’ access to loans, the Chairman of the Ad-Hoc committee, Hon Terseer Ugboh, disclosed this development. He addressed the Federal Ministry of Education and the Implementation Committee, asserting that lawmakers are committed to facilitating a genuine intervention to expedite the launch of the loan scheme.
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Ugboh expressed dissatisfaction with the sluggish implementation of the Students Loan Programme, which could have mitigated the impact of fuel subsidy removal. He urged the implementers to ensure equitable distribution and fairness in the process.
He remarked, “From our perspective, it appears that allocating just 1% of the Federal Government Revenue, as stipulated in the act, might fall short in covering the annual student loans. This consideration stems from the fact that we have hundreds of thousands of students gaining admission each year, coupled with those currently enrolled who might also seek loans to support multiple years of education. I propose that if it becomes necessary, we should contemplate raising the allocation from 1% to 3%. We are open and ready to examine such a proposal. This is a critical matter, and the Ministry of Education can consider holding for this increase to a minimum of 3% of the revenue. The Director of Legal Services at the Central Bank of Nigeria (CBN), Kofo Alada, who spoke on behalf of the Technical Committee, emphasized the necessity for a supplementary budget to ensure the availability of funds for launching the program. He assured that his team has established a goal even before November.”
He further stated, “As technical experts, our approach involves a process flow that will reflect positively on Nigeria.”
