10 Things to Know about the Nigeria Student Loan Bill Signed by President Tinubu

President Bola Ahmed Tinubu signed the “Student Loan (Access to Higher Education) Bill” into law on Monday, offering valuable assistance to indigent students and families in pursuing higher education. Here are ten key points to know about the Nigeria Student Loan Bill:

1. The bill aims to support financially disadvantaged students and families in accessing the opportunities provided by higher education.
2. The new legislation establishes the Nigerian Education Fund, responsible for supervising, coordinating, administering, and monitoring student loans in Nigeria. The fund will be housed with the Central Bank of Nigeria (CBN), enabling qualified applicants to access education loans through commercial banks in the country.
3. Applicants will undergo screening to determine their eligibility for the loan.
4. The loan is available to students enrolled in all public higher institutions.
5. The funds provided by the loan can be utilized for school fees and research purposes exclusively.
6. The loan is exclusively accessible to students studying within Nigeria.
7. The bill includes penalties for defaulting on student loans. Defaulting students may face imprisonment for up to two years, a fine of N500,000, or both. Those found aiding defaulters may also be subject to the same penalties.
8. The student loan is interest-free, alleviating the burden of additional financial costs.
9. Repayment of the loans will commence two years after the completion of the National Youth Service Corps Scheme.
10. Qualified students must apply for the loan through their respective schools of study.

The enactment of this legislation aligns with President Tinubu’s commitments made during his speech at the British Royal Institute in London. At the event, he emphasized the importance of youth empowerment and education reform, expressing his dedication to an inclusive government. His plans include overhauling the education system, addressing the Almajiri system, expanding educational infrastructure, recruiting and training more teachers, and establishing technology hubs to equip young people with digital skills, thereby fostering their leadership abilities. These initiatives are geared towards advancing a 21st-century approach to governance.