President Bola Tinubu has directed the management of the Nigeria Education Loan Fund (NELFUND) to expand its focus area by extending interest-free student loan scheme to Nigerian students interested in skill-development programmes.
The President issued the directive at the State House on Monday after a briefing from Executive Secretary of NELFUND, Akintunde Sawyerr, on the build-up to the launch of the programme later in the month.
The President, in a statement by presidential spokesman, Ajuri Ngelale, said it was important for the scheme to accommodate those who may not want to pursue university education, noting that skill acquisition is as important as obtaining undergraduate and graduate academic qualifications.
“This is not an exclusive programme. It is catering to all of our young people. Young Nigerians are gifted in different areas. This is not only for those who want to be doctors, lawyers, and accountants. It is also for those who aspire to use their skilled and trained hands to build our nation. In accordance with this, I have instructed NELFUND to explore all opportunities to inculcate skill-development programmes because not everybody wants to go through a full university education,” he said.
President Tinubu emphasised the need for equity and inclusivity in the management of the programme, stating: “No matter how economically challenged you are, accredited and qualified students will and must have access to this loan to advance their education in higher institutions. There is no compromise in our commitment to the disadvantaged citizens of this nation.”
In his presentation to the President, Executive Secretary of the Fund, Mr. Akintunde Sawyerr, said the loan application process will be technology-driven, limiting human interface and “eliminating any possibility of maladministration in the programme.”
“By design, this is a perpetual programme and will not terminate. The funds, earmarked for bona-fide Nigerian students, will be disbursed directly to the institutions in the initial phase through electronic transfer. Our students will be catered to in a way that bypasses human interference through the full utilization of available technological platforms, in adherence to Your Excellency’s stated objectives,” he said.
He also said NELFUND has developed a robust risk-mitigation mechanism to address potential risks that may arise from the programme.
Speaking with the Chairman of the Federal Inland Revenue Service (FIRS), Dr Zacch Adedeji, to journalists at the State House, Abuja, after a briefing meeting with President Bola Tinubu, Sawyer also affirmed that the loan would help to stem the dangerous journey undertaken by Nigerian youth across the Sahel to Europe in search of better life.
According to him, the implementation of the student loans scheme would enable Nigerians to pick a career trajectory of their choice, rather than being forced to do something else because they were unable to acquire requisite education due to lack of funds.
Swayerr disclosed that the school fees for successful applicants would be transferred directly to their institutions, noting that while every Nigerian was eligible to apply for the loan, only the neediest would be supported.
“What I want to say to you is that this has been done with a lot of thoughts. So in application and in applying for this loan, there is zero human intervention. In other words, there is an App. The applicant will go on to a portal, they will engage with that App. They will have to put in certain pieces of information, which made them eligible, what is their JAMB number, and of course the tie in to that their date of birth.
“Further pieces of information include things like their national identity number (NIN), which confirms that they are Nigerians, this loan scheme is being paid for by Nigerian tax payers. So it’s for Nigerians and the NIN helps verify and qualify them as such. Their BVN, financial inclusion because this scheme in itself will at some point, be able to empower students so we need to know they have bank accounts.
“We need to know where their accounts are to be able to access those accounts. It will also have their matric number, admission number so that we can firmly establish which institution they are going because one of the key elements of this is that once we’ve received applications and those applications are approved, the fees or the tuition requirements in terms of financials will be transferred directly to the institution.
“That in itself has benefits for the institution. Many students are struggling to pay their fees, their parents are struggling to pay their fees. There’s a very high dropout rate. So it’s one thing to get into the tertiary institution. It’s another thing to stay there for four years or for three years. This scheme seeks to help people access and remain until they qualify or graduate.
“So it’s a great scheme and every Nigerian is able to apply and clearly you know the sifting is that we’re going to look into support those who are most needy in the first instance. But in any event, education across the board is something that everybody should have a right to
“This Act effectively the intention behind it is to ensure that the reason for not being able to go on and further your education at a tertiary level, is not for the lack of finance. This law seeks to bridge the gap between desire to study and capacity to go further. It seeks to bridge that gap, one that is created by lack of finance, lack of funding.
“This intervention will affect the lives of many Nigerian youth because that’s usually the bracket as well to further their education. It will impact the lives of many Nigerian families because the onus to pay for education tends to fall on parents or families”, Dr Swayerr said.
Speaking on the funding mechanism of the programme, Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), said funding sources have been made available to ensure the smooth take-off and sustenance of the programme.
“Mr. President is permanently solving the problem of funding for education in Nigeria. By the directive of the President, the Education Tax Fund is being reviewed to additionally cater to the needs of our university students across all local government areas in the country as they seek to access vocational and traditional university education. Funding for the programme will be adequately covered,” Adedeji stated.