ASUU has rubbished the Student Loan Scheme and tabled major demands to President Tinubu.
NewsOnline Nigeria reports that the Academic Staff Union of Universities (ASUU), Ebonyi State University Chapter, has criticized the Student Loan scheme by President Bola Tinubu’s government, asserting that its implementation and sustainability are not feasible.
This Nigeria news platform understands that the union has urged for a reassessment of its demands which include enhanced funding for revitalization, and the promotion of university autonomy and academic freedom throughout the universities in the country.
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The Chairman of the EBSU-ASUU Chapter, Dr. Ikechuku Igwenyi, made these remarks during a press conference held on Monday in Abakaliki, the capital of the state.
His words read: “As you all are aware, the education system in Nigeria has been bedevilled by underfunding and successive governments. Consequently, public primary and secondary schools have been destroyed, and their teachers have very low self-esteem as the poorest of public servants in Nigeria, with most of them earning less than $20 per month.
“This deplorable and unfortunate situation has encouraged the massive drift of students from Public schools to privately owned Primary and Secondary Schools in Nigeria, where people are exploited for ‘quality’ education. Having achieved the destruction of the basic education system, it seems now is the turn of tertiary institutions.
“This anomaly, ASUU has vowed to resist and is exactly the reason ASUU is asking for renegotiation, improved funding for revitalization, university autonomy and academic freedom.
“These basic problems of our university education system have been truncated with several diversionary policies such as non-payment of Earned Academic Allowances, imposition of IPPIS, threats to the University Autonomy and autonomy of the University Senate by the forceful introduction of CCMAS, obnoxious notional promotion clauses, threat to Union Leaders for public advocacy, unregulated proliferation of state and private universities when there is no funding capacity, among a myriad of others. Today, the story is about the Student Loan Scheme.”
Student Loan
Continuing his argument, Igwenyi traced the inception of the student loan scheme back to the military regime of Yakubu Gowon.
He highlighted that the scheme was conceived to assist students whose parents and guardians’ businesses had been impacted by the civil war, enabling them to afford their education.
He reminisced that the origins of the students’ loan scheme can be traced back to 1972, following the establishment of the Students Loan Board by General Yakubu Gowon (retired) as part of post-civil war recovery initiatives.
This initiative aimed to support students across the nation in financing their education, thereby alleviating the financial burden on parents and guardians whose businesses had suffered during the civil war.
A significant amount of money was allocated to the scheme, with repayment presenting considerable challenges for the military government.
Out of the loans issued, over ₦46 million were outstanding, with a portion of the remaining amount, approximately ₦40 million, proving unrecoverable.
Had that sum been invested in the funding of tertiary institutions, the impact could have been substantial, the ASUU chief noted.
He further noted that in 1993, the Nigerian Education Bank was established through Decree No. 50 of 1993, to provide financial assistance to students.
However, the scheme faced challenges due to its complexity in implementation and recovery, leading to its delayed implementation under the leadership of General Ibrahim Badamosi Babangida (retired).
“In 2016, Hon. Femi Gbajabiamila, the Leader of the House of Representatives under Gen. Muhammadu Buhari (Rtd) sponsored the Bill for an Act to ‘provide for easy access to Higher Education for Nigerians through Interest-free Loans from the Nigerian Education Bank’, which did not see the light of day till 2022. The House of Representatives and Senate passed the Students’ Loan Bill by a modified name, ‘Access to Higher Education Bill.’
“The Bill is now signed by President Bola Tinubu as Access to Higher Education Act, 2023; the NELFUND Student Loan. Some of the modified conditions are that the students submit their data like NIN and Bank BVN with a promise to repay the loan 2 years after NYSC, with a caveat for loan forgiveness in the event of death of the beneficiary,” he added.
Igwenyi added that it is ASUU’s responsibility to give the public proper information on the student loan scheme, which has generated so much controversy.
He stated, “ASUU has a duty to inform the public properly on this matter. It is disheartening that our leaders who enjoyed free and subsidised education in Nigeria and abroad are the people who have resurrected this obnoxious policy of funding education through individual loans. Education is a public good that must be catered for by the government. One wonders why it is difficult to use the money for an already failed enterprise for intervention in public tertiary institutions and make the institutions financially autonomous through the provision of basic facilities for a functional education system with local content.
“Remember that the government had, through thorough engagements with stakeholders, agreed to inject N1.3 trillion as a consequence of the NEEDS Assessment Report of 2012 for turn-around maintenance of tertiary institutions in Nigeria. This was to reduce the financial pressure on the Government, create Research Institutes for research and innovations, provide basic learning infrastructures, build hostels to remove students from town effects and make tuition affordable, and create opportunities for improved internally generated revenue, among other benefits.
“The Federal Government released ₦200 billion in 2013 with a strong promise to release ₦220B annually for five years ending in 2018. Apart from the first tranche released in 2013 by the President Goodluck Jonathan-led administration, not a single complete tranche has been released to date. This is part of the issues ASUU is struggling to achieve, and a major demand of the Union that has seen several MoUs and MoAs without fidelity on the side of the Government.
“That single release of ₦200 billion in 2013 is the reason for most of the modern structures and facilities in all public Universities, Polytechnics and Colleges of Education and Agriculture in Nigeria. On the Student Loan, ASUU was not comfortable with the inclusion of family income threshold, the initial disbursement ratio between the institution and the candidate, the source of the funding, repayment plan in a depressed economy where farmers are expelled from their farms, heavy taxes and tariff imposed on businesses, no reliable power supply, high risks of doing business, and insecurity, jobs are not guaranteed and unavailable after Youth service.”
