President Bola Tinubu yesterday signed the Students Loan Bill into law, to provide financial assistance to Nigerian students in tertiary institutions.
A Presidential aide, Dele Alake, disclosed this to state house correspondents at the end of the signing at the Presidential Villa, Abuja.
The Students Loan Bill, sponsored by former Speaker of the House of Representatives, Femi Gbajabiamila, passed the third reading in the lower chamber in May.
The bill is titled: “An Act to Provide Easy Access to Higher Education For Nigerians Through Interest-Free Loans From Nigeria Education Bank Established in this Act with a View To Provide Education for All Nigerians and for Related Matters.”
The legislation, which seeks to provide financial assistance to Nigerian students in tertiary institutions, passed the third reading in the lower chamber in May.
Alake explained that the law will boost educational pursuit among the youth in Nigeria, as it allows students in tertiary institutions to access interest-free loans from the Nigerian Education Loan Fund, adding that to enjoy the facility, students must show evidence of being indigent.
Under the law, the Nigerian Education Loan Fund is empowered to administer, supervise, coordinate, and monitor the management of student loans in the country.
The fund is expected to receive applications for student loans through higher institutions on behalf of the applicants and screen them.
Alake also informed that a committee drawn from all the relevant education stakeholders would be set up to handle the process of an efficient disbursement of the loans, which would be funded from a percentage of the revenue of the federation.
The law stipulates a two-year imprisonment or N500,000 fine for defaulters and conspirators.
The law will boost educational pursuit among the youth in Nigeria, as it allows students in tertiary institutions to access interest-free loans from the Nigerian Education Loan Fund.
