On student loan law

July 3, 2023

President Bola Tinubu has signed a bill into law granting students in higher institutions access to loans. Ordinarily, this is a rational idea that will immensely assist poor parents as their children gain admission to higher institutions in the country.

However, my position on this matter is that giving bursary awards to Nigerian students is better than the provision of loans. This is because students may not be able to pay back the loan due to inadequate employment opportunities in the country.

The fact remains that many jobless graduates that obtain such loans while in the higher institution would definitely become indebted to the Federal Government and unable to repay them in time.

In the western world, in countries like the United States of America (USA), such a policy is thriving simply because there are job opportunities awaiting students even before they have graduated from their various schools. That is not the case in Nigeria.

This intervention is not about subverting the new Federal Government policy. The bill in question was introduced by Honourable Femi Gbajabiamila and was passed by the National Assembly, but we need to consider the potential drawbacks.

The truth of the matter is that not all Nigerian students will benefit from the proposed loans as there would be considerations of partisan affiliation, with some students given preferential treatment. If this were a case of bursary awards, every student would surely benefit from such national cake. I have benefitted from bursary awards in time past in the country.

I therefore, implore, every stakeholders in the education sector to take a second look at the student loan law.