Why we introduced staff loan scheme in tertiary institutions — Tinubu

President Bola Tinubu has announced the introduction of a Staff Loan Scheme aimed at improving the welfare of staff at tertiary institutions in Nigeria.

This initiative is designed to provide accessible financial support to both academic and non-academic employees throughout the tertiary education system.

The President made this announcement during the 45th convocation of Ahmadu Bello University in Zaria on Saturday.

He was represented by the Minister of State for Education, Prof. Suwaiba Said Ahmad.

President Tinubu stated that the scheme aims to alleviate personal and professional financial pressures, enabling staff to focus on delivering quality teaching, conducting research, and engaging in community service.

“To operationalise this initiative, the Federal Ministry of Education has concluded arrangements with the Bank of Industry (BOI) to provide zero-interest loans to all eligible staff of tertiary institutions nationwide, with the Ministry bearing the full cost of the interest as part of its staff welfare support.

He noted that, “As I speak to you now, some of the beneficiaries have started collecting their monies since last year. For the current year, a total sum of ₦40 billion has been earmarked for disbursement, with individual loan amounts ranging from ₦1 million to ₦10 million.

“The loans will be repayable over a period of five years, including a one-year moratorium, to ensure affordability and sustainability for beneficiaries. I commend the University Management for addressing its rising electricity costs through effective energy conservation, resulting in lower expenses.

“I urge the Management to pursue with vigour its commitment to develop a comprehensive Energy Policy that translates long-standing theoretical solutions into practical steps to deliver tangible results in sustainable power management for the University.

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“A well-formulated and implemented policy will help the University address power challenges and serve as a benchmark for other institutions.

“I recall that in my address at the 44th Convocation ceremony of this University, I stated that the Federal Government was making deliberate efforts to address electricity supply issues for universities to enable them to function optimally.

“I am pleased to inform you that the Federal Government and the Rural Electrification Agency (REA) have signed an agreement with the Federal Ministry of Education (FME) under the Energising Education Programme (EEP), to provide 24-hour electricity supply to all Federal tertiary institutions.

“This project will significantly improve the learning environment, boost productivity, support advanced research, and foster entrepreneurship, thereby contributing to national economic growth. Phases I–III of the projects have already supplied over 100 megawatts of clean energy to 24 Federal Universities and their teaching hospitals.

According to him, “Ahmadu Bello University and other institutions are part of Phase IV of the project, which will commence soon. I again congratulate the graduands and encourage you to utilise your knowledge effectively and to seek further saelf-improvement.

“The training and pre-graduation awareness talks on life after school that the University has given you will go a long way in helping you cope with post-graduation realities, with a focus on creating jobs rather than just job-seeking.

“I am pleased to note that the University is fulfilling this goal of training job creators rather than just job seekers through the Students Enterprise Competition, organised by its International Centre of Excellence for Rural Finance and Entrepreneurship (ICERFE) recently.”