The Academic Staff Union of Universities (ASUU) has rejected the newly introduced Tertiary Institution Loan Scheme by the Federal Government, describing it as “an insult to the sensibilities of tertiary workers” and “the height of mockery of the Nigerian university system.”
The scheme, launched by the Federal Ministry of Education, offers interest-free loans of up to ₦10 million to university staff. It includes a one-year moratorium and a five-year repayment plan, with the aim of enhancing staff welfare, supporting professional development, and promoting financial stability.
However, speaking during a press conference in Uyo on Monday, the Calabar Zonal Coordinator of ASUU, Mr Ikechuku Igwenyi, dismissed the initiative as a “distraction” from pressing issues such as salary renegotiation and payment arrears.
The Calabar zone comprises eight universities, including the University of Calabar, University of Uyo, Ebonyi State University, Abia State University, Cross River State University, Alex Ekweme Federal University Ndufu-Alike, and others.
“It insults our sensibilities that a government that pays its workforce with an outdated salary structure adopted 17 years ago will refuse to renegotiate the same salary since 2012 it was due,” Igwenyi said.
He accused the Federal Government of using “teasers, blackmails, and distractions” such as IPPIS, palliatives, and the student loan scheme NELFUND to avoid meaningful dialogue.
Igwenyi further questioned the rationale behind the loan program:
“How would a so-called people-oriented democratic Government owe its workforce and turn around to offer the impoverished workers impossible and slavish loans in a depressed economy instead of completing the formalities for implementation of a commensurate salary structure?”
He also raised concerns about repayment plans and the imposition of unions as guarantors, describing the arrangement as “unacceptable and exploitative.”
ASUU has vowed to reject the loan scheme “in its entirety,” branding it a “poison chalice.” Igwenyi warned that the August 28, 2025 meeting with the Federal Government would be the last the union attends if concrete actions are not taken.
“We cannot continue to waste our resources attending meetings whose outcomes remain unpredictable,” he stated.
The union insists that the government should prioritize salary structure renegotiation, settle outstanding allowances and deductions, and implement agreements already reached in previous negotiations.
