On Monday, the federal government of Nigeria announced that one of the funding sources for the recently formed Student Loan Scheme will be the Education Tax under the Federal Inland Revenue Service.
This was because it outlined the requirements a borrower had to fulfill in order to be eligible for a loan.
It stated that the program would be entirely automated to guarantee that there would be no human intervention in the loan application or processing.
After briefing President Bola Tinubu on the upcoming launch of the scheme at the Aso Rock Villa on Monday, Dr. Zacch Adedeji, the chairman of the Financial Institutions Regulatory Board (FIRS), said to State House Correspondents, “That is why the education tax fund is one of the sources of funding that we will use to execute this program.”
Less than a week prior, Dr. Yusuf Sununu, the Minister of State for Education, disclosed that the program will, as the President had stated in October, begin in January 2024.
Speaking alongside Dr. Akintunde Sawyerr, the Executive Secretary of the Student Loan Board, Adedeji stated that the administration was holding Nigerian taxpayers accountable by incorporating the education tax into the program.
“This is in fulfillment of Mr. President’s promise that we will make education accessible to all. This is one of the schemes where we will be applying the education tax that we collect.
“It is a way of being accountable to the taxpayers because the essence of education tax is to consolidate and restore education integrity and quality. In fulfilling that part of the Act, the education tax fund is one of the sources of funding that we will use to execute this programme,” he said.
At the same time, Sawyerr, the Scheme’s Executive Secretary, confirmed that there would be no human intervention in the program during his first public briefing by stating that qualified applicants would submit their requests via the website or loan app.
He listed the requirements for each step of the application process, stating that potential applicants needed to provide their date of birth, JAMB registration number, National Identity Number, and Biometric Verification Number, among other information.
“The applicant will go on to a portal, or they will engage with the app. They will have to put in certain pieces of information that make them eligible, such as their JAMB number and, of course, the tie-in to their date of birth.
“Further pieces of information include their NIN, which confirms that they are Nigerians. This loan scheme is being paid for by Nigerian taxpayers. So, it’s for Nigerians and the NIN helps verify and qualify them as such.
“Their BVN is for 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 matriculation number and admission number so that we can firmly establish which institution they are going to, because one of the key elements of this is that once we have received applications and those applications are approved, the fees or tuition requirements in terms of financials will be transferred directly to the institution. That in itself has benefits for the institution,” the Executive Secretary explained.
As Sawyerr put it, the FG was anxious to make sure that young Nigerians did not miss out on a tertiary education because they could not afford it. He compared the loan to a bridge that connects the desire for higher education with the resources to pursue it.
He said, “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 a lack of finance. This law seeks to bridge the gap between the desire to study and the capacity to go further. It seeks to bridge that gap that is created by a lack of finance and funding.”
The Loan Chief clarified that instead of forcing Nigerians into alternative job pathways because they were unable to obtain necessary education, the program would allow them to choose the career trajectory of their choosing.
Additionally, he declared that the loan would contribute to halting the perilous trek of young Nigerians across the Sahel to Europe in pursuit of a better life.
“Some of the opportunities provided by the scheme include enrolling intending students in teacher training programmes and vocational skills.
“The programme provides opportunities for Nigerian students who want to go into academics and get a university degree or perhaps want the technical side and acquire some vocational skills and also in the teacher training space.
“This intervention will affect the lives of many Nigerian youths because that’s usually the best way to further their education. It will enable us to intervene and support families, particularly the needy,” he explained.
The Executive Secretary revealed that the winning candidates’ school expenses will be sent straight to their respective institutions.
President Bola Tinubu signed the Student Loan Bill into law on June 12, 2023. Alake, who was a member of the Presidential Strategy Team at the time, told journalists that the action was taken in “fulfillment of one of his campaign promises to liberalize funding for education.” Students who are impoverished can apply for loans at interest-free rates, thanks to the law.
Declaring the 29th session of the annual Nigeria Economic Summit in Abuja open on October 23, 2023, the President said, “By January 2024, the new Student Loan Programme must commence. To the future of our children and students, we’re saying no more strikes!”
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This post was last modified on January 29, 2024 11:51 am