April 19, 2024/CSL Research
On Wednesday, 3 April 2024, President Bola Tinubu signed the revised Student Loans Re-enactment Bill, 2024 into law. The executive bill, titled “A Bill for an Act to repeal the Students Loans (Access to Higher Education) Act 2023 and to enact the Student Loans (Access to Higher Education) Bill 2024,” establishes the Nigerian Education Loan Fund. The previous act faced challenges related to governance, loan purpose, applicant eligibility, application process, repayment terms, and loan recovery. During the signing ceremony, President Tinubu stressed the importance of education as a tool for poverty alleviation. He highlighted that the primary objective of the bill is to ensure that poor Nigerians have access to quality education and opportunities for skills development.
Yusuf Tanko Sununu, the Minister of State for Education, criticized the 2023 act as overly restrictive. He pointed out that the previous legislation only covered tuition fees, thereby excluding students of federal government institutions and state-owned institutions who do not pay tuition fees from benefiting. Additionally, Sununu highlighted a significant amendment to the
bill, which now includes vocational training programs as eligible under the student loan scheme. This expansion allows students to participate in the scheme not only at federal and state-owned institutions but also with registered entrepreneurs providing vocational training.
The new bill proposed establishment of Nigeria Education Loan Fund (NELFUND) as a corporate entity with the legal capacity to initiate and face litigation under its own name. The fund will provide loans to qualified Nigerians for tuition, fees, charges and upkeep in approved tertiary academic institutions and vocational and skills acquisition institutions in Nigeria. Of particular significance is the fact that the 2024 student loan act removes the family income threshold and guarantor requirement as eligibility criteria. Student applicants can no longer be disqualified based on their parent’s loan history.
The bill has sparked optimism among many due to its broader inclusivity, but concerns linger
regarding its implementation. Previous education interventions have fallen short, largely due to a
lack of continuity. Doubts have arisen regarding the effectiveness of the scheme, particularly
concerning the potential irrecoverability of loans and the inability of those in genuine need to
access the funds. Nonetheless, there have been calls for the government to prioritize not only
funding but also addressing the countless issues plaguing the educational sector.
Education serves as a catalyst for economic development by empowering individuals, driving
innovation and entrepreneurship, reducing poverty, promoting social stability, and laying the
foundation for long-term economic growth and prosperity. However, beyond significant
disparities in access to education across different regions and socio-economic groups which this
fund seeks to address, the Nigerian educational system has been plagued with enormous
problems over the years. Infrastructure deficiency, poor funding, poor teaching quality, irrelevant
curriculum and more recently, insecurity are some of the problems faced by the Nigerian
educational sector.
