In a surprising turn of events, the highly anticipated launch of the 50 billion naira student loan scheme by President Bola Tinubu has been suspended indefinitely. The scheme, which aimed to provide interest-free loans to indigent students in Nigerian tertiary institutions, was expected to commence in January 2024. However, concerns have been growing over the implementation of the policy as January has already elapsed.
The Student Loan Scheme, established through the Access to Higher Education Act, 2023, was seen as a fulfillment of one of President Tinubu’s campaign promises to liberalize funding for education. The Nigerian Education Loan Fund was created to handle all loan requests, grants, disbursement, and recovery.
Reasons for the delay in the launch of the scheme have been attributed to the expansion of the fund’s mandate to include students seeking loans for skills development, as directed by President Tinubu. This expansion required the fund to increase its scope, which contributed to the lag time in launching the scheme.
The Academic Staff Union of Universities (ASUU) has reiterated its stance on the student loan scheme, expressing skepticism about its effectiveness. ASUU had previously alleged that the scheme was a plan to enrich a few individuals who owned private universities in the country. Instead, the union advised the government to issue grants to indigent students.
President Tinubu’s chance to reset anti-graft war
In another development, President Tinubu has ordered a full-blown investigation into the finances of the Ministry of Humanitarian Affairs and Poverty Alleviation, leading to the suspension of its minister, Betta Edu. The President’s swift response to the scandal has resonated with Nigerians and civil society organizations, who have long called for a probe into the ministry.
The Ministry of Humanitarian Affairs and Poverty Alleviation has been plagued with corruption allegations, with previous ministers also facing investigations. The conditional cash transfer scheme, which provides cash for officials to distribute, has been a source of concern, with funds being misappropriated and laundered through various bank accounts.