Implementation of the student loan scheme of the Federal Government should start immediately, as promised by the President Bola Tinubu administration, to prevent a situation where more indigent students are unable to further or complete their education at the tertiary schools in the country.
Before last year when the loan programme was announced, millions of Nigerian students already had difficulties furthering their education at higher schools while many who had started studying were not sure they would be able to complete their studies due to financial constraints to meet obligations. In fact, many of such poor students had been withdrawing from their schools to pursue other careers in life, just as many potential higher school students did not bother to seek admission for lack of money.
The announcement of the scheme in 2023 was a welcome development not only because the potential beneficiaries (poor students) would be able to overcome the most worrisome hurdle to their educational advancement, but also because the programme was scheduled to take off by September to October of the 2023/2024 academic session. It is therefore disappointing that in January 2024, months after students were expected to have started enjoying the loans, the scheme has not taken effect, and the Federal Government is only explaining how beneficiaries will access the funds.
Leaders’ attitude of celebrating announcement of policies and programmes but becoming lukewarm in implementation erodes confidence in them and discourages support for the government. Sometimes it smacks of deceit and insensitivity on the part of the government.
When President Tinubu assented to the Students Loan Bill on June 13, 2023, it was commended in several quarters in the country, particularly academic and media. The then leader of the President’s Media Team and a member of the Presidential Strategic Team, Mr. Dele Alake, accompanied by other members of the team, including the Permanent Secretary, Ministry of Education, David Adejoh told the nation that the signing of the bill into law was in fulfillment of one of Tinubu’s promises made to Nigerians during the presidential campaign that he would bring back the student loan issue, with a view to enabling indigent ones to access Federal Government loans to fund their educational pursuits or career as it is done in some developed countries across the world.
To show his commitment to the spirit and letters of the new law, Tinubu raised a committee made up of ministries and agencies to work out the modalities for the disbursement of the loans, which he ordered should take off by September to October of the 2023/2024 academic session.
It was envisaged that the committee would have finished its job and every necessary thing put in place before the planned take off time. The potential beneficiaries of the loans have since looked forward to enjoying them since September last year, but the takeoff has been delayed. Higher institutions of learning have admitted new students, many of whom have managed to start studying for their courses while a lot of the old students and their parents struggle to get money to pay for fees that have even been increased in some schools.
The latest that was heard on Monday January 22, 2024 about the loans was how students would access them and that the programme has been widened to accommodate young Nigerians who are interested in acquiring skills outside tertiary institutions.
The Executive Secretary and Chief Executive Officer of the Students Loan Board, Dr. Akintunde Sawyyer, said the process would be seamless. There will be no human contact, as everything will be automated. The funds for successful students, which will be sourced from education tax, will be transferred directly to the schools’ account.
Special Adviser to the President on Media and Publicity, Ajuri Ngelale quoted the President as pointing out that skill acquisition is as important as obtaining graduate academic qualifications.
Truly, helping indigent students to access higher education is crucial to national development. In many parts of the world, education is considered as a public good, making it a primary responsibility of government or public institutions to provide and fund educational opportunities.
Germany and Sweden are examples of countries where the governments intervene in the funding of education of higher schools students through loans. In Germany, millions of people have been able to study since 1971 and almost one-fifth of students benefit from the Federal Education and Training Assistance Act, also known as BAföG. In Sweden, loans are granted for students over the age of 20 who are studying in university or vocational college. The loans must be repaid in both countries.
The intervention in education funding is initiated in societies where there is deep appreciation of the role of education in national development, and recognition of human capital as the greatest national asset. By the programme, the Tinubu administration has displayed its recognition for the contribution education can make in the task of rapidly developing Nigeria.
With the unprecedented rise in the cost of living in the country, recent increase in fees charged by many schools and sharp fall in the disposable income of most parents making it difficult for them to meet the financial demands of sponsoring their children in schools, the loan scheme should start now. A lot of students are already withdrawing from school while brilliant but indigent ones that should be going further up are becoming dejected.
A crucial condition attached to the interest-free loan is that it must be repaid. In other countries where such government intervention in education funding exists, the chances of recovering the loans are very high because of availability of employment opportunities for most beneficiaries after graduation, to facilitate repayment.
But in Nigeria, there is a high level of unemployment. Beside the dwindling revenue of government that makes it difficult for most graduates to be given employment in the public service and agencies, some companies that ought to provide job opportunities are relocating to the neighbouring countries, while investors are scared, because of unfavourable business climate in Nigeria characterised by epileptic power supply, high interest rate, insecurity, massive importation of foreign goods and poor purchasing power of the citizens caused by high poverty level, among others. There is a need to do more to revive the economy and tackle the high level of poverty in the country and provide employment, in order to facilitate recovery of the loans.
For the loan scheme to be successful and serve the envisioned national interest, the government must ensure that it is not encumbered by excessively complicated administrative procedures. The programme must be open to all eligible Nigerians irrespective of tribe, religion and political affiliation. The loan bank should be adequately funded for qualified applicants to access money, just as the government should be proactive against fraudulent behaviour that some beneficiaries may perpetrate to default on their loans.
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