Students’ Loans: FG 30% Proposal Puts TETFUND On The Spot

A Federal Government’s resolve to enhance higher education funding partly through students’ loans provisions, may have put the Tertiary Education Trust Fund (TETFUND) on the spot.

This is because the President Bola Tinubu government has proposed that 30% of TEFUND’s  allocations from the Federation Account be set aside for the purpose of funding tertiary learning.

The money is expected to be routed through the Nigerian Education Loan Fund (NELFUND).

Information of the president’s proposal to TETFUND was made known by his Special Adviser on Information and Strategy, Mr Bayo Onanuga during a state house briefing.

“Some people may have been wondering, how are we going to fund the loans we are giving to Nigerian students? Well, I think the government has provided an answer. Most of the funding will also come from the money going to the Tertiary Education Trust Fund”, Onanuga stated.

“So there’s an amendment to the TETFUND Act that was made in 2011 that now says that the fund shall, before disbursement of the amount in the fund, set aside an initial one-third of the amount to be transferred to the Nigerian Education Loan Fund.

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“That is, 30% of whatever TETFUND gets from the federation account will now be passed on to NELFUND, which will provide a ready funding source to NELFUND.

“NELFUND has been pegged to spending only 5% of its income on its administration.

“Whether it wants to do capital projects in its office or pay salaries, it cannot spend more than five per cent of whatever accrues to it from the Federation Account.”

The Eagle reports that the Nigerian education has been stressed overtime by a number of deficiencies, with funding challenge a major one.

The problem is exacerbated by the challenging economy which has made it difficult for some parents to sustainably train their wards in school, and which make students’ loans provision a a necessity.

The intervention, is expected to make the burden lighter for the students and their guardians.

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This is even as Onanuga gave the light that the Nigerian Education Loan Fund would be financed through relevant adjustments.

The Eagle also reports that the feeling is deep-rooted that Nigeria, with equitable management of its resources, could conveniently bear the costs of educating its citizens at least at critical levels.

Those who hold this view, cite similarly endowed countries which have long prioritised education funding for their citizens through soft windows like students’ loans.