By Disun Amosun
Chairman, House of Representatives’ Committee on Students Loan, Rep. Gboyega Isiaka (APC, Ogun) yesterday gave insight into how government at the center intends to implement the 2024 Amended Student Loan Act to the benefit of Nigerians studying in public owned Tertiary Institutions across the country.
Rep. Isiaka during a press briefing in Abuja gave an assurance that the quantum of funds required for successful implementation of Students Loan will be drawn from one percent tax on all revenues accruing into the Federation Account.
This according to him, it will provide a pool of adequate resources to carter for financing of the students loans on yearly basis.
The committee chairman explained that the repeal of the initial Student Loan Act was necessitated by the need to remove encumbrances that have been depriving lots of Nigerian Students from accessing the Loan.
Prominent among the difficulties previously hindering accessing the loan, he noted, are issues of getting acceptable guarantors, actual loan repayment and an inefficient coordinating body to run the scheme.
“The law has amended so many shortcomings in the 2023 law in the area of funding, now we have a known corporate entity that is called the Nigerian Education Trust Fund NETF, an institution that is strong, sustainable and comparable to what obtains in different parts of the world, going by all that will come into it”, he said.
Hon. Isiaka expressed satisfaction that the Nigerian government under President Bola Ahmed Tinubu, has, by signing the Student Loan Act into law, and steadfast in its implementation, has done well for the Nigerian educational sector by ameliorating the burden on parents and guardians in sponsoring their wards in tertiary institutions.
On the possible takeoff time of the scheme, Rep Isiaka expressed optimism that the Executive will expedite action on the setting up the management team of the NETF, without further delay.
Hon. Isiaka expressed optimism that the management of the National Education Trust Fund, when constituted, will be given marching orders to commence work in earnest for the benefit of millions of Nigerian students.
The Committee chairman also averred that the Education loan has both economic and social benefits, explaining that the Student Loan is interest free loan with flexible repayment arrangements
According to him, “the Student Loan covers Tertiary as well as skills and vocational education. And the law also made provision for repayment which is arranged to commence immediately after a beneficiary finish school.”
While responding to questions on the exclusion of Private Tertiary Institutions from the scheme, Hon. Isiaka affirmed that the issue was raised by concerned Stakeholders during the public hearing stage of the Bill, said: “for anybody that has the capacity to send his or her child to some of those private schools, you will agree with me that the need for such loan is probably minimal.
“The scheme involves a particular stream of funds meant for public tertiary education and I know that plans are on to see what can be developed for private education”, he added.
Hon. Isiaka disclosed that there are adequate provisions in the law that will address loan repayment concerns. As section 29 of the law has it that as an employer of labour, once the law comes into operation, the education loan status of any applicant must be ascertained before giving employment, and this applies to both the public and private sectors.
He disclosed that anyone convicted under the provision of the Act is liable to N2 million fine or three months imprisonment or both.
