FG will begin disbursing student loans in September 2023. The federal government has stated that plans are being made to begin disbursing student loans between September and October of this year.
The federal government has stated that plans are being made to begin disbursing student loans between September and October of this year.
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Andrew David Adejo, Permanent Secretary, Federal Ministry of Education, made the announcement yesterday in Abuja while speaking to the press on the legislation.
President Bola Tinubu fulfilled a campaign pledge by signing the Student Loan Bill into law.
The measure, sponsored by Femi Gbajabiamila, Speaker of the Ninth House of Representatives, gives interest-free loans to underprivileged Nigerian students.
The bill aims to give underprivileged Nigerians easy access to higher education through interest-free loans. The Nigerian Education Loan Fund provides interest-free loans.
Adejo stated that the President has approved the formation of a committee comprised of ministries and agencies to oversee the scheme’s implementation.
“The bill is to ensure that every Nigerian has access to higher education through what we call the Higher Education Nigerian Bank,” he explained.
“Learning from past mistakes, the bank will not be the type to sit down and collect application loans; instead, it will perform normal banking functions and ensure loans are given because we have had cases of loan recovery in the past.”
“The Act, as it stands, explains the procedure, but as I speak with you today (yesterday), the President has approved the committee’s recommendations.”
The committee is made up of ministries and agencies, and their next meeting is scheduled for June 20.
“The President has also directed that recipients of these loans be identified by September to October of the 2023/2024 academic session.” So it is a significant march order for us to phantom the loan application procedure for individuals.”
The permanent secretary stated that the government will establish a specialized bank to operate the facilities, as well as a tracking system to ensure the scheme’s efficiency.
He stated that the initiative will include pupils from both private and public schools, and that the federal government, FG would establish a new bank to support it.
“We are not going to use existing banks,” Adejo continued. We are planning to establish a new bank to address this issue.
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“The loan is for you to get an education and get a job.” Following that, you begin repaying. The loan repayment process does not begin until you find work.”
He praised Tinubu as well as the FG as a job creator who is reinventing the wheel by drawing on his extensive private sector experience.
