FIRS boss harps on education tax as funding source for Student Loans disbursement
…As Tinubu orders expansion of student loan scheme
Chairman of FIRS, Zacch Adedeji has disclosed that the Federal Government will fund the Student Loan Scheme recently initiated by President Bola Tinubu’s administration through the Education Tax under the Federal Inland Revenue Service (FIRS).
Speaking to State House correspondents at the Presidential Villa, Abuja yesterday, Adedeji, who was flanked by the Executive Secretary of the Board, Dr. Akintunde Sawyer, said the deployment of the education tax fund into the scheme is one way the government can be accountable to taxpayers in the country.
“Mr. President is permanently solving the problem of funding for education in Nigeria. By the directive of the President, the Education Tax Fund is being reviewed to additionally cater to the needs of our university students across all local government areas in the country as they seek to access vocational and traditional university education. Funding for the programme will be adequately covered,” he said.
He said that there will be zero human interference as the applicants will access the loan scheme through an application that will require their national identity card and their Bank Verification Number, BVN.
Meanwhile, President Bola Tinubu has also ordered the management of the Nigeria Education Loan Fund (NELFUND) to expand its focus area by extending interest-free loans to Nigerian students interested in skill-development programmes.
The President issued this directive at the State House on Monday after a briefing from Mr. Akintunde Sawyerr, Executive Secretary of NELFUND, on the build-up to the launch of the programme later in the month.
The President said it is important for the scheme to accommodate those who may not want to pursue university education, noting that skill acquisition is as important as obtaining undergraduate and graduate academic qualifications.
“This is not an exclusive programme. It is catering to all of our young people. Young Nigerians are gifted in different areas. This is not only for those who want to be doctors, lawyers, and accountants. It is also for those who aspire to use their skilled and trained hands to build our nation. In accordance with this, I have instructed NELFUND to explore all opportunities to inculcate skill-development programmes because not everybody wants to go through a full university education,” he said.
President Tinubu emphasised the need for equity and inclusivity in the management of the programme, stating, “No matter how economically challenged you are, accredited and qualified students will and must have access to this loan to advance their education in higher institutions. There is no compromise in our commitment to the disadvantaged citizens of this nation.”
In his presentation to the President, Executive Secretary of the Fund, Mr. Akintunde Sawyerr, said the loan application process will be technology-driven, limiting human interface and “eliminating any possibility of maladministration in the programme.”
“By design, this is a perpetual programme and will not terminate. The funds, earmarked for bona-fide Nigerian students, will be disbursed directly to the institutions in the initial phase through electronic transfer. Our students will be catered to in a way that bypasses human interference through the full utilization of available technological platforms, in adherence to Your Excellency’s stated objectives,” he said.
He also said NELFUND has developed a robust risk-mitigation mechanism to address potential risks that may arise from the programme.
