Just two days after the federal government announced the indefinite suspension of the student loan scheme, President Bola Tinubu has taken action by sending a bill to the National Assembly. The bill seeks to repeal the current Act and replace it with a new one, aiming to address the challenges faced in implementing the scheme.

President Tinubu, in a letter addressed to Speaker Tajudeen Abbas, emphasized the need for an updated Act to ensure a smoother implementation process. The existing Act was one of the first legislations signed by President Tinubu after his inauguration, and it was originally sponsored by Femi Gbajabiamila, who served as the chief of staff to the president during his speakership.

However, the government has encountered difficulties in implementing the student loan scheme, leading to multiple postponements of its launch. In light of this, a top government official recently announced the indefinite suspension of the program.

In his letter, President Tinubu highlighted that the new bill aims to address various challenges related to the management structure of the Nigerian Education Loan Fund (NELF), applicant eligibility requirements, loan purpose, funding sources, and disbursement and repayment procedures.

The letter, titled “Transmission of Student Loans (Access to Higher Education) (Repeal and Re-Enactment) Bill, 2024,” was sent to the House of Representatives in accordance with Section 58(2) of the Constitution of The Federal Republic of Nigeria, 1999 (as amended).

President Tinubu expressed his hope that the bill would receive prompt consideration from the House of Representatives. The proposed legislation seeks to enhance the implementation of the Higher Education Student Loan Scheme, ultimately making it more effective and efficient.

As the bill undergoes review and deliberation by the National Assembly, its potential impact on the student loan system and the education sector as a whole will be carefully evaluated. President Tinubu’s proactive approach reflects his commitment to improving access to higher education and ensuring that students can benefit from a well-structured and sustainable loan program.