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Nigeria Overhauls Student Loan System to Enhance Higher Education Access

The amendments to the Student Loan Act in Nigeria represent a significant overhaul aimed at enhancing access to higher education for Nigerian students. Key changes include the establishment of the Nigeria Education Loan Fund (NELFUND), which provides loans for tuition, fees, and upkeep to qualified individuals studying in approved tertiary academic and vocational institutions.

Published

4 weeks ago

April 4, 2024

Stella Charles Akupue

Nigeria Overhauls Student Loan System to Enhance Higher Education Access

The Presidency has announced significant amendments to the Student Loan Act, which President Bola Tinubu recently signed into law. According to Ajuri Ngelale, the Special Adviser to the President on Media and Publicity, the amendments were made in the interest of Nigerian students to address challenges identified in the previous legislation.

The newly enacted Student Loans (Access to Higher Education) (Repeal and Re-enactment) Act, 2024, introduces significant changes to improve governance, management, eligibility criteria, the application process, repayment provisions, and loan recovery.

Key amendments include establishing the Nigeria Education Loan Fund (NELFUND) as a corporate body empowered to provide loans for tuition, fees, charges, and upkeep to qualified Nigerians studying in approved tertiary academic and vocational institutions.

NELFUND is granted the legal capacity to enter into contracts, initiate actions for loan repayment, and acquire property for its functions. The Act separates governance functions from management operations, with a board of directors overseeing governance and a management team led by a managing director responsible for day-to-day operations.

Additionally, the eligibility criteria have been revised to remove the family income threshold and guarantor requirement, allowing students to apply for loans and take responsibility for repayment.

Amendments to the Student Loan Act Introduce Nigeria Education Loan Fund and Streamlined Loan Processes

The Act also ensures a minimum national spread of loans disbursed annually and provides provisions for loan forgiveness in cases of death or inability to repay due to unforeseen circumstances. Notably, loan recovery efforts cannot commence until two years after completion of the National Youth Service Programme, and beneficiaries may request extensions in cases of unemployment or lack of income.

The amendments aim to streamline the student loan process, improve access to higher education, and ensure fairness and equity in loan disbursement and repayment. The establishment of NELFUND and the restructured governance and management framework are expected to enhance transparency, accountability, and efficiency in the administration of student loans in Nigeria.

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