Nigeria set to commence student loan scheme implementation

Nigeria's President Bola Tinubu is set to kick off the implementation of the student loan scheme on Wednesday, with an approved budget of 35 billion naira for the launch. The initiative aims to target 70,000 initial applications, with an additional 50,000 awaiting approval in a bid to bridge the financing gap for students pursuing tertiary education in government-owned institutions in the country. The program, spearheaded by the President, seeks to enable students to access funds to cover tuition fees and provide a monthly stipend to support their upkeep while studying. Akintunde Sawyerr, the Managing Director and CEO of the Nigerian Education Loan Fund, provided insights into the progress and developments of the scheme in an interview with CNBC Africa. Sawyerr highlighted that the initiative has garnered significant interest, with over 160,000 registrations and 100,000 completed applications received. The verification process is currently underway to ensure that the applicants meet the necessary criteria and have valid admission to tertiary institutions. One key element for the success of the student loan scheme is the prompt disbursement of funds. Sawyerr explained that upon submission, applications undergo a 30-day evaluation process, resulting in either approval, rejection, or further clarifications. While the evaluation period is within 30 days, the actual disbursement to institutions may occur after the evaluation, depending on the timing of student admissions or the start of the next academic session. The stipend provided to students serves as a crucial aspect of the program, offering financial support for their living expenses while pursuing their studies. Sawyerr detailed the disbursement process, where funds for institutional charges are directly remitted to the institution based on the confirmed course and program details provided by the student. Additionally, students have the option to apply for a separate upkeep loan, which is determined based on their individual needs and location. The upkeep loan is disbursed monthly to the student's bank account to aid them with living costs, taking into consideration the varying expenses in urban and rural settings. This tailored approach ensures that students receive adequate financial assistance to support their educational journey. The launch of the student loan scheme signifies a significant milestone in Nigeria's higher education landscape, aiming to enhance accessibility and affordability for students seeking tertiary education. President Tinubu's commitment to the initiative underscores the government's dedication to empowering the youth and investing in the country's human capital development. As the program sets in motion, the seamless execution of fund disbursement and support mechanisms will be crucial in realizing the full potential of the student loan scheme and creating lasting impact for generations to come.