President Bola Ahmed Tinubu has formally requested the House of Representatives to reconsider the Students Loans Act of 2023, proposing a new bill titled the Students Loan Bill 2024 for enactment. During the plenary session on Thursday, Speaker Abbas Tajudeen presented the president’s proposal, highlighting the administration’s commitment to refining and improving the framework for student loans in Nigeria.
The President’s letter underscores the objective to rectify existing hurdles within the Students Loans Act of 2023, aiming for a more effective execution of the student loan scheme. Specifically, the bill seeks to address issues concerning the management structure of the Nigerian Education Loan Fund (NELF), criteria for applicant eligibility, the scope of loan utilization, funding mechanisms, and the strategies for loan distribution and repayment.
This initiative aligns with President Tinubu’s earlier commitment to launch an interest-free student loan program to support Nigerian students in higher education. Despite initial plans for the scheme to begin in January 2024, its rollout has faced delays, prompting criticism and prompting the need for legislative review.
The request for a legislative overhaul comes after the Tertiary Education Trust Fund’s (TETFund) Executive Secretary, Sonny Echono, pointed out that the delay was partly due to the National Assembly’s feedback. This reform aims to streamline and enhance the operational aspects of the student loan scheme, addressing key concerns from stakeholders about eligibility, funding, and loan management processes.