The House of Representatives' special committee on Students Loan Fund and Access to Higher Education on the 15th of August,2023 proposed a substantial rise of three percent in funding for student loans, up from the initial one percent. This recommendation comes in response to the announcement by the Federal Government regarding funds allocated for student loans.
Chairman of the committee, Terseer Ugboh, unveiled this proposal during a public hearing held in Abuja to evaluate the progress achieved by the presidential committee tasked with removing obstacles hindering access to the loan fund. In a bid to ensure a smoother implementation of the scheme, Chairman Ugboh affirmed the committee's commitment to supporting its successful launch.
Ugboh elaborated, stating, “It seems to us from this perspective that one per cent of the Federal Government Revenue as stated in the act would not be enough to cover students loans for a year given the hundreds of thousands of students that we have getting admission every year and those who are currently in school who may wish to also apply for a loan to cover for other years of their schooling.I want to suggest that there is a need to increase the requirement from one per cent to three per cent. Then propose that and we are ever willing to look at it. It is something that is quite critical."
In addressing potential concerns regarding funding constraints, Ugboh expressed that a constitutional amendment might be necessary to ensure the successful implementation of the proposal. He explained, “Now we are hearing that the states or local governments may or may not permit that deduction, so, I think there may be a Constitutional amendment before that one per cent may be drawn. So if that is not done, the Federal Government can only draw from its own share of revenue which means state universities may be excluded if the State Governments do not agree to participate in funding this student loan from their allocation from the Federal Government"
Kofo Alada, Director of Legal Services at the Central Bank of Nigeria, representing the Technical Committee, emphasized the importance of a supplementary budget for the launch of the student loan scheme. Alada made a recommendation to the Committee that, concerning the funding requirement of this project, the body had the authority to gather and express a desire to allocate a supplementary budget for this specific project. He emphasized that this capability was within their jurisdiction and it would be wise to make provisions for this.
He further added that considering the actions taken by them and the 9th National Assembly, the approach should involve a collaborative effort. That was the reason behind presenting this amendment to them. He requested the committee to consider becoming the driving force for implementation rather than allowing the proposal to remain stagnant
David Adejoh, Permanent Secretary of the Federal Ministry of Education, reassured attendees that the student loan scheme is set to commence during the 2023/2024 academic session. Adejoh cited possible start dates in October or November of this year, taking into account adjustments in academic calendars caused by recent strikes.
The collaborative efforts of the House of Representatives and relevant government bodies signify a concerted move towards enhancing access to higher education through increased funding for student loans.
.jpeg)
0 Comments