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Student Loan Scheme: Now let the educational revolution begin!

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By Dada Olusegun

On June 12, 2023, President Tinubu signed the Access to Higher Education Act, 2023, into law to enable indigent students to access interest-free loans for their educational pursuits in any public Nigerian tertiary institution. The Act, also known as the Students Loan Law, equally established the Nigerian Education Loan Fund, which is expected to handle all loan requests, grants, disbursement, and recovery.

President Bola Ahmed Tinubu, on page 44 of his Renewed Hope manifesto, clearly stated that his administration will institute a students loan program following a similar model established by the Kaduna State government in 2018.

In fulfilment of that promise, a few days after the assumption of office, President Tinubu signed the Students Loan Bill sponsored by then House Speaker, Femi Gbajabiamila into law.

The Access to Higher Education Act provided for the establishment of the Nigerian Education Loan Fund (NELFUND) to be domiciled in the Central Bank of Nigeria and administered through an 11-man Special Steering Committee chaired by the CBN Governor. This special committee comprising representatives from FIRS, Federal Ministry of Education, NUC, and other critical stakeholders has been constituted since last year and held their inaugural meeting on 19th February 2023.

Why the Students Loan Scheme is a forward leap 

The student loan scheme is a game-changer and extremely important to Nigerian students, as it helps to make tertiary education in public institutions more accessible to those who come from very poor backgrounds or who are unable to finance their tertiary education. The scheme offers loans to students to cover the cost of tuition and other schooling expenses. According to the Executive Secretary of the Nigerian Education Loan Fund, Akintude Sawyerr, students can access up to five hundred thousand (N500,000) from NELFUND annually for tuition fees and other expenses.

This potentially makes it a N2 million financial package for a four-year undergraduate course. This is unprecedented in the history of education in Nigeria. With this student loan programme, no student in a public tertiary institution will ever be denied access to education or prevented from sitting for exams on account of the inability to pay school fees. This means no unnecessary carryover due to the inability to sit for exams. A four-year course will be a four-year course. President Tinubu emphatically made this much clear on various occasions.

There are also tweaks to the scope of the loan program that would allow beneficiaries to apply part of the loan to take care of other expenses such as textbooks, accommodation, and feeding. The President, last January, equally directed that the loan programme be expanded to allow extending of interest-free loans to Nigerian students interested in skill-development programmes.

This directive by Mr. President shows how determined he is to develop the human capacity of all young Nigerians and not necessarily just those pursuing tertiary education. President Bola Tinubu knows how important it is for the scheme to accommodate those who may not want to pursue university education. He noted that skill acquisition is as important as obtaining undergraduate and graduate academic qualifications.

By supporting thousands of young people to pay for skill acquisition training, the Student Loan scheme is building an army of skilled workforce that can easily become self-employed and increase our nation’s productive base. The knock-on effect of this on the economy is massive!

Nigeria’s version of Student Loan Scheme is unique 

The student loan scheme that is set to kick off soon is unique and different from the students’ loan scheme in other parts of the world, including the developed countries. To start with, Nigeria’s student loan is interest-free! The sum is static with a range of repayment options that are tied to a borrower’s income. The structure of the loan repayment is very friendly and flexible.

The beneficiaries will get a two-year “grace period” after completing the one-year National Youth Service before they are expected to commence repayment of the loan. The beneficiary begins repayment only when he or she has started earning income. The baseline repayment amount is 10 percent  of the monthly net pay of the beneficiary (in the case of an employee) or 10 percent of monthly income or profit of the beneficiary (in the case of a self-employed) until the loan is liquidated provided the 10 percent income of the beneficiary in question does not exceed the total loan disbursed to the beneficiary.

There is also an option of a one-off repayment or an opportunity to indicate the particular percentage model you want for those in private business. Beneficiaries who can not find employment within the grace period of two years will have to periodically report their employment status to the Student Loan board. Of course, there are modalities in place linked to the beneficiary’s BVN to ensure this claim is verifiable.

There is also a possibility of waivers. Beneficiaries of the student loan confirmed to be dead, terminally ill, and incapable of earning a living through work will be granted waivers. This will also be highly ring-fenced and supported by the most credible of proofs to guard against abuse. This student loan scheme is perpetual in nature, which means there is no termination date for the scheme. Funding sources have been made available in the Establishment Act with the Education Tax Fund collected by the FIRS being the most prominent source of funding.

The student loan scheme will certainly help to increase the number of Nigerians who are able to attend and graduate from public tertiary institutions or skill/vocational training institutions. This will also eventually help in improving the quality of education and ultimately increasing the employability of our fresh graduates. There are no negatives that one can associate with the student loan scheme.

This is one programme with the capacity to unlock the enormous possibilities locked in our population before now due to the absence of universal access to quality tertiary education and skills development. This is a forward leap for our nation and a Renewed Hope promise kept by Mr. President.

History will be kind to Chief of Staff and former Speaker of the House of Representatives, RT Hon Femi Gbajabiamila, for sponsoring this all-important bill while in the House of Representatives.

It will be kinder to President Tinubu for sticking to a vision he has had long before now.

Now, let the educational revolution begin!

Opinion

Are youths the panacea for Nigeria’s problems?

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By Temitope Tbog Omoakhalen

In 2021, after the COVID-19 pandemic, my husband and I engaged in a pet project that required us conducting candid interviews with people on the streets to gain insight into their perceptions of Nigeria, their expectations of government and their sense of ownership of a Nigerian dream. It was an interesting season of my life that afforded me the opportunity to just hear first-hand what everyday Lagosians were thinking. There was an encounter with a young lady, however, that left an indelible mark on my consciousness. She said to me, “TBOG, at the tender age of six, I was called ‘the leader of tomorrow’. I just turned forty, yet, the promise of tomorrow still eludes me. When will my tomorrow come?” Her words touched me deeply because it echoed a sentiment shared by many who have long been called, THE LEADERS OF TOMORROW. “When will our collective tomorrow materialise, and what form will it assume?” many youths ask.

For a long time, the youth have been told to wait for their turn to lead the nation. As the years have passed and the vista of tomorrow appears distant, one cannot help but question the accuracy of the ‘waiting period.’ Will the youth ever have their turn at power, or will it have to be forcefully grabbed? Are youths even ready to handle the reins of power or are we just too inexperienced to know what to do with it? Would Nigeria progress as a nation if it had an infusion of youthful energy to invigorate governance structures or would our much-touted inexperience cause us to falter under pressure, make costly mistakes, or succumb to the allure of power without proper accountability? If they had the opportunity, would the current crop of youths be any different from the older generation of leaders they fiercely condemn or would they become the breath of fresh air Nigeria needs? While these are burning questions on the minds of many, I am compelled to take Lagos, once again, as my model.

Lagos State boasts of the most vibrant and dynamic population of young people in the country. Many of Nigeria’s young leaders and change-makers have their roots in Lagos, the likes of Iyinoluwa Aboyeji, Olugbenga Agboola, Folarin Falana (Falz), Debo Adedayo (Mr. Macaroni), Tunde Onakoya, Hilda Baci, Debola William, Chude Jideonwo, Yemi Adamolekun among others who are all thriving in their various spheres of influence, from technology to arts and entertainment to media to civil society, placing Nigeria in global conversations. This suggests that the youth have the potential to make a difference if given the opportunity in the political arena. Thankfully, the current Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, is a young Nigerian whose inspiring story is traceable to the Centre of Excellence. Moreover, did you know that in Governor Babajide Sanwo-Olu’s cabinet, there are young people in their thirties holding key positions? Some of his Senior Special Assistants were in their twenties when he took office and they have since grown to head agencies within the state, contributing their quota to the decision-making process. For these ones, their tomorrow has come; they have become the leaders of today.

Mr. Governor recognises the untapped potential of youth and is committed to investing in this potential. No wonder the Lagos model is a departure from the longstanding tradition of political leadership dominated by the older generation. The Lagos model is a definite paradigm shift in governance dynamics. This should not be very surprising given that Lagos is a forward-thinking state driven by the THEMES+ agenda. Besides, Lagos has historically provided an enabling environment for young people to thrive across various sectors even as the political environment has been characterised by intergenerational integration and continuity of vision. This is a commendable model that other states must consider adopting. While there are indicators of increased youth participation in several states across the nation, to accurately measure inclusion, a Youth Participation Index that evaluates the gains of the Not-Too-Young-To-Run Act and the involvement of youth in appointive positions would be a valuable additional contribution from civil society groups. While I believe that Lagos State would top such an index, I recognise that there is still much room for progress in the inclusion of young people in public leadership across the nation.

Among public officials, there are two schools of thought on youth involvement in public leadership. On the one hand, there is the belief that incorporating youth in politics and governance would trigger a positive disruption through the introduction of innovative ideas, digital savvy, and a deeper connection with contemporary issues facing the populace. This school of thought holds that the idealism of youth as well as our passion for change offers a promising antidote to stagnant bureaucracies and the entrenched systems that currently impede transformative outputs. This school of thought further holds the opinion that since many among the present-day older generation of leaders began their leadership journeys as youths, it would be only just for them to yield the floor to the present-day younger generation. On the other hand, there are those who hold sacred the age-old wisdom of experience. The holders of this opinion argue that governance is a complex matter requiring the nuanced understanding and institutional knowledge that can only be found among seasoned politicians and administrators. They believe that youthful idealism could become a pitfall without practical wisdom gained through years of service and leadership.

My thoughts regarding these two positions are very simple. Leadership is a skill that must be forged in the crucible. I do not think that the youths, in themselves, are the panacea to Nigeria’s problems. I do not think power should be given to anyone simply because they are of a particular age bracket. I think the making of the Nigeria of our dreams is the collective responsibility of the old and the young because we need the wisdom of the old and the energy of the youth to make this nation work. But this is also not an endorsement of the status quo. If we had to choose between the ebullience and innovation of the youth on the one hand and the conventionality and steadfastness of the old on the other, I would likely go for the former. But what Nigeria needs, beyond creativity and passion, is patriotism and people of character; people who love their nation and can defend her, come what may. These kinds of people are first forged in the home before they are released to the nation. If parents do not rise to take charge of the value and moral components of their children’s growth and development, a pipeline of value-driven youthful leaders would be a pipe dream.

As a youth, I may be castigated for even considering that the older generation should still have a say at the table, but life has shown me that there are unpatriotic and corrupt youths as much as there are nationalistic and reliable older leaders. As a Fellow of The Lateef Jakande Leadership Academy, I have seen and worked with political leaders and bureaucrats who possess professionalism and integrity – value systems that I hardly thought that I would encounter in the public sector and that I never believed even existed among politicians. Among the old as well as the young, I have seen the propensity for the good as well as the inclination to the not-so-desirable. This has compelled a rethink of the notion of age as the sole determinant of leadership emergence in our nation. While it is my utmost delight to see more young people emerge as leaders in Nigeria, I am concerned that if the production process is not thoroughly curated to produce a generation of leaders who are passionate and patriotic and possess the character and competence required for governance, we would replicate the corruption that currently eats at the soul of our nation, except that this time, it would be with an exuberance that could bring our nation to its knees.

This was why, when the Lateef Jakande Leadership Academy (LJLA) convened its first-ever Lagos Leadership Summit (LLS) held on April 17, 2024, tagged, Leadership and Nigeria’s Future, expectation surged in my heart that the event would kickstart fresh conversations around the integration of a new generation of trained and tested leaders. I was not disappointed. As the Honorable Commissioner for Innovation, Science & Technology, Olatubosun Alake, pointed out at the event, there are older leaders devoid of patriotism, just as there are callous youths hungry for power. The goal, in my opinion, is an integrated approach where the wisdom of age converges with the dynamism of youth. Mentorship programs, intergenerational dialogues, knowledge exchange opportunities and leadership training initiatives, all of which the LJLA and LLS embody, can bridge this gap. By harnessing the complementary strengths of diverse generations, Lagos is already cultivating a leadership ecosystem that is resilient, adaptable, and responsive to the needs of its diverse populace. No wonder we boldly say: This is Lagos, the Centre of Excellence, the Nigerian model for city transformation and the reference point for all other states.

Temitope is a Fellow, Lateef Jakande Leadership Academy.

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Opinion

Naira’s slump: Urgent action needed to restore stability

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By Kenechukwu Aguolu

The recent rebound of the Naira brought a glimmer of hope to Nigerians amidst the backdrop of economic uncertainty. However, skepticism soon emerged as many questioned the underlying factors driving this increase in value. Concerns arose that the Naira’s rise may have been artificially influenced, either through defending the currency with foreign loans or tapping into the country’s foreign reserves. In response to these speculations, the Central Bank of Nigeria’s Governor vehemently denied any such manipulation, asserting that the Naira’s upward trajectory was a result of the government’s strategic policies aimed at stabilising the currency.

However, in the past few days, the Naira has experienced a decline in value, prompting widespread unease, and clarity regarding the exact causes of its depreciation remains elusive. Various theories have emerged, ranging from the impact of speculative activities in crypto-currency platforms to the Central Bank’s cautious stance amid dwindling foreign reserves. The lack of definitive explanations only serves to exacerbate the prevailing uncertainty surrounding the Naira’s future path, leaving citizens and investors alike on edge.

Despite recent attempts by the Vice President to reassure the public regarding the Naira’s resilience, the potential consequences of a sustained decline cannot be overstated. A loss of faith in the government’s ability to manage the economy could further destabilise an already precarious situation. Moreover, a weakening Naira threatens to reignite a frenzy for foreign currencies, jeopardising financial stability and will also deter much-needed foreign direct investment, thus hindering economic growth. The looming specter of a return to the pre-rebound era of financial instability looms ominously, underscoring the urgent need for decisive action.

Given these pressing challenges, the government must demonstrate swift and resolute leadership to address the root causes of the Naira’s decline and restore confidence in the currency. A comprehensive diagnosis is paramount to identify the underlying factors contributing to the Naira’s weakness. Only by understanding the root causes can effective solutions be devised and implemented to shore up the currency’s value and stabilise the economy.

Furthermore, the government must redouble its efforts to diversify the economy away from its heavy reliance on oil revenues. While this remains a long-term strategy, accelerating the implementation of diversification policies is crucial to reducing Nigeria’s vulnerability to the shockwaves caused by oil price fluctuations. By promoting other income sources such as agriculture, manufacturing, and technology, Nigeria can mitigate the adverse effects of volatile oil prices on its economy and currency.

In conclusion, immediate and decisive action is imperative to prevent the Naira’s decline from spiraling into a full-blown crisis. The government must act swiftly to address the root causes of currency instability, restore trust in the Naira, and pave the way for sustained economic growth and prosperity. The time for action is now, and the stakes could not be higher for the future of Nigeria’s economy.

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Opinion

Adeleke v Aregbesola: The price of political treachery

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By Dr Jimoh Olorede

Preparatory to the July 2022 governorship election in Osun State, and since thereafter, until recently, the ex-governor and immediate-past Minister of Interior, Ogbeni Rauf Adesoji Aregbesola, a top beneficiary of the All Progressives Congress (APC) party, as a two-term commissioner in Lagos, two-term governor in Osun, and minister consecutively, suddenly became an abettor and a conspiratorial ally to an opposition gubernatorial candidate, Senator Ademola Adeleke, against his party, APC, and his successor, Adegboyega Oyetola, who served as his Chief of Staff, succeeded him as governor, and was seeking a reelection! The gubernatorial election was held, Adeleke won, Oyetola lost, but subsequently appointed as minister, while Aregbesola left the political stage as minister and got back home!

Oyetola’s open and obvious sin for which he must be crucified, and was actually dealt with, at least, in the myopic estimation of Aregbesola and his co-conspirators, was ‘reviewing and reversing his Schools Reclassification Policy’, by which Oyetola actually rekindled people’s hope, and what they perceived as a retrieval of their ‘lost glory and education origin’, with his return and reversal of the changed public schools’ founder-cum-original names and unique uniforms to the status quo. This happens when a government is consent of the governed.

His (Oyetola’s) hidden, how-do-we-say-it sin for which he must be punished was what Ogbeni would term ‘deployment of his magic wand’ with which he was able to pay full salaries of the state workers, which Aregbesola could not, or perhaps did not, given the inherited jugular-strangling and throat-squeezing debt into which he plunged the state. These were Oyetola’s obvious and hidden sins for which the ‘political structure and APC house’ built in Osun by Asiwaju Bola Tinubu, through Aregbesola and others, must be demolished and totally rent asunder.

Since the creation of Osun State, ten people have served as governor, with four military governors and six civilian governors. While the first (military) governor, Leo Segun Ajiborisha, served the shortest term of four months, from 27 August 1991 to 3 January, 1992, Ogbeni Rauf Adesoji Aregbesola so far, served the longest term of eight years as governor, from November 27, 2010 to November 27, 2018. However, within this period of eight years of the longest-serving governor, so many things had happened in and to the state. One of those things was the changing and renaming of the state from Osun State to “State of Osun”. The ex-governor must have seen an error which none of his seven predecessors who had ruled the state before him could see.

He also created and introduced a different state Anthem, Logo, Crest and Flag. Apart from the humongous loan repayment, Oyetola also inherited these “Aregbesola-personified legacies” about which he had to be silent, as it was a moral burden, and rather maintained and sustained the status quo throughout his administration, feigning pretense as if he didn’t see anything wrong just to avoid crisis or rift with Aregbe.

Alas, Governor Ademola Adeleke eventually betrayed his ‘mission-fellow’, an abettor and co-conspirator, Ogbeni Rauf Aregbesola, who maliciously joined forces with him against his own party and successor. He has obliterated all Ogbeni’s known legacies in the state. No sooner had the governor taken the oath of office than he started repealing Aregbesola’s legacies right at the venue of his inauguration. While delivering his inaugural speech, governor Ademola Adeleke publicly said: “Consequently, I hereby issue the following directives which will be backed up with appropriate Executive Orders.

“. . . Three, and immediate reversal to the constitutionally recognized name of our state – Osun State. All government insignia, correspondences, and signage should henceforth, I repeat, should henceforth reflect ‘Osun State, rather than ‘State of Osun’, which is unknown to the Nigerian Constitution.”

Nigerian politics is a treacherous game. There’s no permanent friend or enemy in politics, as politicians deceitfully use and dump each other. Adeleke knew Aregbesola was smart; he consequently cynically stooped to outwit his smartness, and Ogbeni unwittingly misconstrued his betraying kindergarten dancing posture for stupidity.

Also, while Oyetola maintained and sustained the legacy, and retained the nomenclature “OYES” (Osun Youth Empowerment Scheme) as birthed and christened by Aregbesola, governor Ademola Adeleke dissolved the OYES Corps to be renamed after his ‘Imole Youth’. The governor, through his spokesperson, condemned what he referred to as ‘content of the programme’ which, according to him, turned people to grass-cutters and market sweepers. Similarly, on many occasions, I have heard Adeleke-led PDP condemn Aregbesola’s government in the media, bemoaning that he failed to complete any road in eight years, and so on.

Eventually, the scenario turned out to be Adeleke paying Aregbe in his own coins! Based on malice and ill-will, and for his immediate ego satisfaction, Aregbesola sacrificed his party’s future gains, jeopardizing the fortune of many, thinking he was ‘dealing’ with, and whipping Oyetola with political lashes. Paradoxically, as Ogbeni whips, Oyetola laughs while many, including Ogbeni himself, weep as direct recipients of the whipping! As a Yoruba adage says “Papa npara e, o lo np’aja” meaning a tick, like a sheep-ked, is unwittingly ruining itself thinking is undoing its host-dog by sucking its blood.

In June 2023, Ogbeni Aregbesola while speaking at the palace of Ataoja of Osogbo, Oba Jimoh Oyetunji Larooye II, after he had returned to Osun State consequent upon the expiration of his term as minister, said “I was born in Ikare Akoko. It’s surprising that a boy born in Ikare Akoko became a commissioner in Lagos and governor in Osun. That’s the work of God. He used Asiwaju to lead me to the path of success. I thank God who brought me to Lagos through the assistance of Asiwaju Bola Tinubu. He is the architect of my success.” He added that Tinubu directed him to come and take over “my fatherland – Osun State, that it was my next place of assignment.” Can you imagine, Aregbesola saying this after the deed (a grave damage) had been done! This is exactly how traitors behave – joining forces with conspirators to betray their benefactors.

Dr. Olorede, a strategic communication analyst, writes via [email protected]/08111841887

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