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By: Naheemat Oyekanmi.
Nigeria’s House of Representatives has proposed a three percent allocation of the Nation’s annual revenue for Student Loans.
In a bid to enhance access to higher education, the House of Representatives is advocating a significant increase in funding for the Students Loan Scheme. The proposed adjustment, from one percent to three percent of the government’s annual revenue, reflects the government’s commitment to providing financial assistance to a wider pool of students. This move comes as part of a concerted effort to address the challenges hindering access to higher education and support students pursuing their academic aspirations.
Terser Ugbor, Chairman of the House Ad-hoc Committee on Students Loan Fund and Access to Higher Education, underscored the necessity of this adjustment during a meeting with stakeholders. Recognizing the limitations of the current one percent allocation stipulated in the existing Act, Ugbor highlighted that a three percent allocation is imperative to accommodate the growing population of students seeking assistance through the scheme.
Ugbor expressed his willingness to consider an increase in funding, stating, “I want to suggest that if there is the need to increase the requirement of 1% to 3%, then propose that and we are ever willing to look at it. It is something that is quite critical.”
The proposed increase in funding aims to address the fiscal realities of sustaining the Students Loan Scheme. With a multitude of students seeking financial aid, the one percent allocation is deemed insufficient to adequately cover their educational expenses. By raising the allocation to three percent, the government aims to ensure that a greater number of students can access and benefit from the loan scheme.
Ugbor acknowledged potential challenges in implementing the increased allocation. He noted that the consent of state governments is crucial, as they may need to permit the deduction from their allocation of the federal revenue. In cases where this consent is not obtained, the Federal Government’s ability to fund state universities might be hampered.
Ugbor elaborated, “Now we are hearing the states or local governments may or may not permit that deduction so I think there may be Constitutional amendment before that 1% may be drawn. So, if that is not done, the Federal Government can only draw from its own share of revenue which means state universities may be excluded if the state governments do not agree to participate in funding this student loan from their allocation from the Federal Government.”
David Adejoh, the Permanent Secretary of the Federal Ministry of Education, assured lawmakers that the Students Loan Scheme will begin operating before the end of the current year. Adejoh indicated that a Technical Committee established by President Bola Tinubu is working on the scheme’s implementation. Once the committee completes its assignment, the ministry will collaborate with the National Assembly to make any necessary amendments to the Act establishing the Students Loan Scheme.
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