Student loan: FG to begin pilot phase of scheme with applicantions from public institutions

The Nigerian Education Loan Fund says it will launch a pilot phase of the student loan scheme with applications from public tertiary institutions.

This comprises students at federal and state universities, polytechnics, and schools of education.

It also wants President Bola Tinubu to nominate a chairperson, a Managing Director, and two Executive Directors to the executive management team.

The Fund’s spokesperson, Mr Nasir Ayitogo, confirmed this on Wednesday, citing terms of the Student Loans (Access to Higher Education) Act (Repeal and Re-Enactment) Bill, 2024, which Tinubu signed into law on the same day.

Mr. Ayitogo noted that the President was expected to launch the scheme after appointing qualified persons into the offices provided by the new law.

The executive bill was titled “A Bill for an Act to Repeal the Students Loans (Access to Higher Education) Act, 2023 and Enact the Student Loans (Access to Higher Education) Bill, 2004 to Establish the Nigerian Education Loan Fund as a Body Corporate to Receive, Manage and Invest Funds to Provide Loans to Nigerians for Higher Education, Vocational Training and Skills Acquisition and for Related matters.”

The newly-signed piece of legislation allows for the appointment of a Chairperson of the fund, a Managing Director and two Executive Directors of Finance and Operations each to “assist the Managing Director in performing his duties.”

The appointees “shall hold office for five years,” the Act read.

The new Act also made the loan fund a corporate entity with the ability to enter contracts, including loan agreements with applicants, or to initiate enforcement actions to recover loans from beneficiaries; provisions it lacked hitherto.