…As Reps propose 3% hike on students’ loan
The Federal Ministry of Education has defended the increment of school fees in government-owned universities, saying the development was to cover the high cost of facilities by the institutions.
This is just as the House of Representatives proposed an increase of three percent as against an initial one percent for students loan from revenue generated annually, as announced by President Bola Tinubu.
Permanent Secretary of the ministry, David Adejo, during a meeting with the House of Representatives Committee on Students Loans, yesterday, while reacting to rumours that the signing of the Students Loan Act had prompted several federal universities to increase their charges, explained that what was reported as increase in tuition fees was simply an increase in charges by schools.
Stating that no federal University in the country was allowed to collect tuition fees from students, Adejo said that the charges collected by the institutions are used by them to pay for some of their services, including electricity bills, accommodation, among others.
He also announced that the implementation of the Students Loans scheme is scheduled to commence during the 2023/2024 academic session, adding that the President has directed the completion of necessary work on the modalities for the students’ loan implementation, with a target start date in September 2023.
Adejo further stated that the President has established a coordinating committee, with the Chief of Staff serving as the chairman, adding that the committee comprises key entities such as the Central Bank of Nigeria (CBN), the Federal Budget Office, the Ministry of Education, the Ministry of Finance, and others.
He noted that the committee has additionally established a technical team tasked with establishing a solid framework for initiating the program and addressing any legal obstacles that could hinder Nigerians’ access to the loan. He added that in spite of the charges by institutions, the universities have not been able to meet up with some of their expenses.
The Director of Legal Services of the Central Bank of Nigeria who represented the Acting Governor of the Central Bank, Kofo Salami Alada said they will work with the various tertiary institutions that will be assigned unique codes, the Joint Admission and Matriculation Board, (JAMB), and other bodies involved in tertiary education in the country to make the process much easier.
According to him, the CBN will not be responsible for the funding of the exercise, adding that its responsibility will be the bankers to the fund as the funds will be provided solely by the Government.
Alada said the technical design for accessing the loan has been completed, adding that vendors are being invited to commence work on the design.
