The House of Representatives has successfully advanced the Student Loans Re-enactment Bill, pushing it through for a second reading. This executive bill, officially titled “A Bill for an Act to repeal the Students Loans (Access to Higher Education) Act, 2023 and Enact the Student Loans (Access to Higher Education) Bill, 2004,” aims to establish the Nigerian Education Loan Fund as a body to manage funds for providing loans to Nigerians seeking higher education, vocational training, and skills acquisition.
Introduced on the House floor by Leader Julius Ihonvbere, the bill has garnered attention due to President Bola Tinubu’s supportive letter urging lawmakers to consider the proposed legislation.
In his letter, President Tinubu highlighted the bill’s goals to improve the Higher Education Student Loan Scheme by revising aspects related to the management structure of the Nigerian Education Loan Fund, eligibility, loan purposes, funding sources, and disbursement and repayment processes.
The letter reads, “Pursuant to Section 58(2) of the Constitution of The Federal Republic of Nigeria, 1999 (as amended). I forward, herewith, the Student Loans (Access to Higher Education) (Repeal and Re-Enactment) Bill, 2024 for the kind consideration of the House of Representatives.
“The Student Loan (Access to Higher Education) (Repeal and Re- Enactment) Bill, 2024 seeks to enhance the implementation of the Higher Education Student Loan Scheme by addressing challenges related to the management structure of the Nigerian Education Loan Fund, applicant eligibility requirements, loan purpose, funding sources and disbursement and repayment procedures.
“Whilst hoping that this submission will receive the usual expeditious consideration of the House of Representatives, please accept, Rt Honourable Speaker, the assurances of my highest consideration.”
Ihonvbere led the debate, emphasizing the importance of education as a tool against poverty and expressing his confidence in the President’s commitment to making education affordable for all Nigerians.
He highlighted the necessity of repealing the 2023 Act due to operational ambiguities and sustainability concerns, asserting that the 2024 Re-Enactment Bill has rectified these issues.
The Student Loan (Access to Higher Education) Act 2023, signed into law by President Tinubu in June 2023, established the Nigerian Education Loan Fund. However, the Act faced implementation challenges, prompting the need for a revised bill.
The 2023 Act’s management was initially entrusted to a Special Committee chaired by the Governor of the Central Bank of Nigeria, which was seen as outside the apex bank’s core mandate.
The 2024 bill proposes significant changes, including removing family income thresholds and guarantor requirements as eligibility criteria and allowing loan applications for tuition, other fees, and maintenance allowances.
It also introduces more flexible loan recovery processes, with repayment starting once beneficiaries gain employment, and provides for loan forgiveness in cases of death or acts of God.
Deputy spokesman of the House, Philip Agbese, expressed support for the bill, urging the Federal Government to ensure equitable access to the loan scheme across the country.
The bill’s progression marks a critical step towards reforming student financing in Nigeria, aiming to broaden access to tertiary education and alleviate the financial burden on students and their families.
