The Presidency has shed light on the rationale behind the amendment of the Student Loan Act, which was recently signed into law by President Bola Tinubu on April 3, 2024. According to a statement issued by the Special Adviser to the President on Media and Publicity, Ajuri Ngelale, the decision to amend the legislation stemmed from the challenges associated with the previous Act, which would have impeded its effective implementation.
Ngelale outlined various shortcomings of the repealed Student Loan Act, 2023, including issues pertaining to governance and management, loan purposes, applicant eligibility criteria, application procedures, repayment provisions, and loan recovery. These deficiencies necessitated a comprehensive overhaul, which has been addressed by the newly enacted Student Loans (Access to Higher Education) (Repeal and Re-enactment) Act, 2024.
A key highlight of the amended Act is the establishment of the Nigeria Education Loan Fund (NELFUND) as a corporate entity endowed with the legal capacity to enter into contracts, including loan agreements. NELFUND is also empowered to undertake necessary actions to ensure repayment by beneficiaries.
Under the new legislation, NELFUND is authorized to provide loans to eligible Nigerians for various educational expenses, including tuition, fees, charges, and maintenance costs incurred during their studies at accredited tertiary academic institutions, as well as vocational and skills acquisition institutions within the country.
The introduction of NELFUND represents a significant step towards enhancing access to higher education and vocational training for Nigerian students. The revamped Act aims to streamline the loan disbursement process, improve governance and oversight mechanisms, and facilitate the effective recovery of loans, thereby fostering greater inclusivity and opportunity within the education sector.
With these amendments in place, the government anticipates a more efficient and transparent framework for student loan management, ultimately contributing to the advancement of education and human capital development in Nigeria.
