President Bola Tinubu signed the Student Loan Bill into law on Monday, fulfilling his campaign promise to liberalize education funding. The bill enables indigent students to access interest-free loans. It was sponsored by the Speaker of the 9th House of Representatives, Femi Gbajabiamila, and passed the third reading on May 25, 2023.

According to a member of the Presidential Strategic Team, Dele Alake, the law requires prospective beneficiaries to prove their origins. The move is aligned with global standards and aims to facilitate access to education, following practices in developed countries.

Although the bill takes immediate effect, the application procedures will be determined by committees overseeing the loan disbursement process. The Permanent Secretary of the Ministry of Education, David Adejoh, noted that the Federal Government’s scholarship board will now function as a loan board, offering educational credit facilities to qualified applicants.

However, the Academic Staff Union of Universities (ASUU) expressed concerns about the loan bill, viewing it as discriminatory between the children of the rich and the poor. ASUU’s National President, Prof. Emmanuel Osodeke, argued that student loans burden graduates from low-income backgrounds with debt. He highlighted the bill’s income requirement, stating that only children whose parents earn at least N500,000 per annum would benefit.

Similarly, the National President of the Academic Staff Union of Polytechnics (ASUP), Mr. Anderson Ezeibe, questioned the feasibility of loan repayment terms. He raised concerns about students who do not secure employment immediately after the National Youth Service Corps (NYSC) and how they would repay the loans.

In contrast, the National Association of Nigerian Students (NANS) considered the student loan bill a step forward for the education system. While praising the initiative, NANS Coordinator for Zone D, Adejuwon Emmanuel, pointed out the challenges of loan repayment. He emphasized the need to address the issue of graduates who remain unemployed two years after completing the NYSC program.

Professor Ini Uko, a former Deputy Vice-Chancellor at the University of Uyo, commended the student loan initiative. Uko acknowledged that tuition fees might increase as a result, but argued that it is necessary to reduce reliance on government funding for tertiary education.

The introduction of the Student Loan Bill aims to broaden access to education for indigent students. However, concerns have been raised regarding the potential burden of loan repayment for graduates without immediate employment opportunities. The government’s implementation and response to these concerns will shape the effectiveness and impact of the student loan program in Nigeria’s education system.