The Federal Government announced on Wednesday that preparations for the disbursement of student loans are nearing completion, with plans to commence between September and October 2023.
David Adejo, the Permanent Secretary of the Federal Ministry of Education, made this disclosure while addressing reporters in Abuja, discussing the recently enacted Student Loan Act.
As a reminder, President Tinubu signed the Student Loan Bill into law on Monday, fulfilling one of his campaign promises. The bill, sponsored by Femi Gbajabiamila, Speaker of the 9th House of Representatives, provides interest-free loans to financially disadvantaged Nigerian students.
Adejo stated that the aim of the bill is to ensure that every Nigerian has equal access to higher education through the establishment of the Higher Education Nigerian Bank.
“We are not relying on existing banks. Instead, we are creating a new bank solely dedicated to addressing this issue. Learning from past mistakes, this bank will not merely handle loan applications; it will also perform regular banking functions and ensure loans are granted. We have had cases of loan recovery challenges in the past,” he said.
Expanding on the timeline, Adejo explained, “The act outlines the process, but as of today, the President has sanctioned the formation of a committee comprising ministries and agencies. Their meeting is scheduled for June 20.
“Moreover, the President has directed that by the 2023-2024 academic session, from September to October, he expects to see beneficiaries of these loans. This is a significant milestone for us, so we have to expedite the loan application process ahead of this deadline.”
Adejo further affirmed that apart from establishing a specialized bank to manage the loan operations, there will be an efficient tracking system in place to ensure the smooth running of the program.
He emphasized that the purpose of the loan is not only to support individuals in pursuing their education but also to enhance their employment prospects.
Furthermore, loan recovery will only commence once the borrowers secure employment.
“We want to ensure that this opportunity is available to students of both public and private schools. While public schools offer free tuition, private schools charge fees. Hence, we want to extend the benefits to all eligible applicants,” he added.
