A couple of years ago, at the convocation of the University of Lagos, Hon Femi Gbajabiamila, who was then the Speaker of the House of Representatives, delivered a lecture. Among many other issues discussed, he suggested that a Student Loan scheme or bill was one of the ways to solve the problem of financing education in Nigeria. He sponsored the bill on the matter in the National Assembly. On Monday June 12, 2023, just two weeks into the tenure of the present government, President Bola Ahmed Tinubu announced the adoption of the loan scheme.

The President and his team presented it as a democracy day gift to the people of the Federal Republic of Nigeria. This so-called ‘gift’ resulted in more questions than answers. Mr. Dele Alake, a member of the presidential strategic team disclosed to state house correspondents that the signing of the bill was in fulfillment of Mr. President’s campaign promises to liberalize the funding of education in Nigeria.

Frankly speaking, I was worried when I heard President Tinubu promise during his presidential campaign, that students will easily get loans to fund their education. Every time I thought about it, it sounded to me like, education will become very expensive and Nigerians will have to pay for that expense.

Come to think of it, the idea of student loans is not entirely new. History takes us back to when former head of state, Yakubu Gowon introduced federal student loans in 1972 with a payment period of twenty (20) years; it did not work. The people who took the loans never paid back.
Then in 1993/1994, the military enacted decree 50; also setting up a students’ loan board. This was domesticated by the national assembly in 2004. This one looked promising, however, within a year it collapsed. Guess what? The money grew wings and disappeared.

The details and criteria of the promised students’ loan scheme leave so much on the plate of Nigeria and Nigerians. If past administration had many difficulties with the implementation of the best policies in this country; how then will this scheme be any different, with the many vultures’ already hovering with talons sharpened?

Without a doubt, I believe the student loan scheme is a good policy from Mr. President and his team, but does the passing of the bill into law make it a success? Have we considered the fallout of this scheme? I fear that we may have bitten off more than we can chew. The president of the Academic Staff Union of Universities (ASUU), Prof. Emmanuel Osodeke, also made
this observation in a recent interview on Arise News Channel, noting that high unemployment rate in the country remains a challenge.
Let’s take a look at the 2023 student loans Act, not only is the process cumbersome, but the conditions therein seemed like they are set to enslave an already battered youth population.

The Act provides interest-free loans for indigent Nigerian students. Students must apply to the chairman of the education bank through their respective institutions and an applicant’s family income must be less than N500, 000 per annum. Applicants must provide two guarantors: a civil servant with 12 or more years in the service and a lawyer who is at least 10 years post call to. All applications will be submitted through the student affairs office of each institution; with a list of all qualified applicants from the institution accompanied by a letter signed by the vice chancellor or rector or head of the institution. The Act stipulates that a beneficiary will begin repayment two years after completing the mandatory one year National Youth Service Corps (NYSC) scheme by having 10% of his or her monthly salary deducted into a designated bank account. Defaulting or aiding to default will attract a fine of N500, 000 or two year’s imprisonment or both.

Funding for the scheme will be from one percent levies from Federal Inland Revenue Service (FIRS), the Nigerian Immigration service (NIS), the Nigerian Customs Service (NCS) and one percent from oil profits. Disbursements will be made within 30 days of the application reaching the chairman of the committee. However, this we know from past experience is easier said than done.

It could be argued that some of the criteria put in place are to discourage would- be applicants. First, regarding the list of guarantors; just how are above classes of individuals expected to sign up for indigent youths? And how are prospective applicants or their parents expected to get access to such people? Second, the bureaucratic process of accessing the loan: from the applicant’s institution to the CBN? Since when has the civil service in Nigeria become so efficient to process such in 30 days?

Third, let us examine the repayment plan. To start repaying two years after NYSC is simply assuming too much. Our tertiary institutions produce thousands of graduates yearly with many ending up as unemployed, self-employed or okada men (commercial motorcycle riders).
The Act is silent on Nigerians who do not yet have a job two years after NYSC but prescribes a two year jail term for loan defaulters. If I do not get a job after two years will I be considered a defaulter? Will I go to jail for being unemployed? The answers to these questions are likely no, but the Act needs to be clear on this.

Odeh Victoria is a 100 level law student of Delta state University,Abraka, Delta state, Nigeria.

The post Nigeria Student Loan: The Way Forward -By Odeh Victoria first appeared on Opinion Nigeria.