4 Loopholes Awaiting Federal Government's Student Loan Initiative

Amidst the rising numbers of students seeking higher education admission within the surging economic crisis, many Nigerians commend the federal government’s introduction of a student loan scheme meant to give indigent Nigerians access to tertiary education.

Stakeholders believe that massive access to tertiary education is necessary to transform Nigeria from a commodities-based based to a predominantly knowledge-based economy.

Nevertheless, some experts are worried that this noble student loan initiative has numerous loopholes that must be addressed, taking clues from what has happened in some of its peer groups in Africa.

The following are the loopholes that this student loan possesses which must be addressed:

1) Inadequate funding

Research has shown that some of the challenges of student loans in Africa, especially in Nigeria include inadequate resources, unemployment among student loan beneficiaries, and corruption on the part of the administrators, among others.

Most times student loan initiatives in Africa, especially Nigeria operate with lean budgets that cannot cover their operational costs and absorb the rising cost of higher education and expanded enrolments in many universities.

According to the 2024 appropriation bill, a sum of ₦50,000,000,000 was allocated for the student loan policy which is a far cry compared to the ₦90,000,000,000 allocated to hajj pilgrims.

Experts say that this singular act cast doubts on the sincerity of the government to make the student loan scheme work.

“The decision of the government to spend 80% of what was approved for students’ loans on religious tours depicts misplacement of priority,” Experts say.

David Imhonopi, a professor of Industrial Sociology and Human Capital Development at Covenant University, Ota, sees the student loan as a noble initiative that would end up an empty talk if the government fails to do the needful.

“The policy itself is a noble one but the political will for the implementation is grossly lacking,” he said.

Stakeholders maintained that for the student loan initiative to function adequately there must be proper funding in place.

2) Corrupt administrators

Besides, the challenge of incompetent administrators must be addressed to avoid a repetition of past pitfalls. Corruption, mismanagement, and non-repayment kill intervention credit schemes in Nigeria.

In the 1970s, the Federal Military Government promulgated the Nigerian Students’ Loans Board Decree to provide funding to students based on loans repayable twenty years after graduation but it collapsed after a while due to massive indebtedness and corruption.

3) Student Loan Recovery

In light of student loan recovery, experts say that Nigeria has lessons to learn from South Africa, Kenya, and Ghana to maximise the use of student loan schemes, which have become popular in different African countries including Rwanda and Uganda.

Stakeholders familiar with the student loan history in Nigeria say the student loan scheme existed in the past but had to be wound up because the repayment rate was pitifully low.

“Beneficiaries evaded re-payment claiming it is part of their share of the national cake. I am not sure that this posture among our students has changed,” a stakeholder said.

Victor Usifor, a legal practitioner, revealed that one of the major challenges before the executors of the student loan scheme is an inaccurate database, which the authorities need to address to curb corruption, and misappropriation of funds.

“In addressing possible mutilations in the student loan scheme, the government will ensure accurate and detailed information of the beneficiary and their guarantor,” Victor Usifor emphasized.

Friday Erhabor, the director of media and strategies at Marklenez Limited urges the Nigeria Education Loan Fund (NELFUND) administrators to partner with private organisations for proper tracking of student loan beneficiaries.

”Government can also partner with organised private sectors, that would make it easier to track those already employed and in a position to pay back their loan,” Friday Erhabor said.

Boye Ogundele, an educationist urges the Nigeria Education Loan Fund (NELFUND) concerned to emulate Ladoke Akintola University in ensuring that the student loan scheme is a success.

“What they can do to get the loan back is what some schools are doing such as Ladoke Akintola University. The school will not deprive you of writing your examination in case you cannot pay for your school fees.

“You will graduate like every other person but you will go and source for the money before you get your original certificate. No notification of the result until you pay every kobo.

“They should ensure that their parents or guardians sign as guarantors with collateral security,” Boye Ogundele said.

4).Job creation

The unemployment problem is not a new phenomenon in Nigeria. However, it has assumed a greater dimension in the past few years.

Nigeria’s unemployment rate surged to 5.0% in the 3rd quarter of 2023 from 4.2% in the previous quarter, according to the Labour Force Survey report.

Experts believe that one of the ways to make the student loan scheme succeed is to create more jobs for the upcoming graduates to enable them to pay the student loans within the time frame.

Source: https://businessday.ng/news/article/four-hurdles-awaiting-fgs-student-loan-scheme/

Federal Government Grant Disbursement To Continue As No Local Government Area Has Met The 1290 Maximum

Applicants of the federal government grant yet to receive their federal government grant need not worry as the 1290 per local government area has not been met, an observation though the federal government grant portal shows that none of the local government area has reached the 1290 target. Applicants that registered for the federal government grant before the deadline and updated their NIN before the deadline should not fret as the federal government grant disbursement is still ongoing, the federal government grant will continue until the last 1290 per local government area is reached.

Applicant that failed to update their NIN before the deadline will not receive the federal government grant, including applicants that updated their NIN after the deadline. The NIN verification is a major requirements to getting the federal government grant, according to the Minster for Industry, Trade and Investment Doris Nkiruka Uzoka-Anite the NIN verification ensures that beneficiaries do not receive the federal government grant twice and also ensures that the federal government grant is given to individuals that exists and not 'ghost' individuals. After all 1290 beneficiaries have been captured then the list of beneficiaries will be published publicly according to the Minister for Industry, Trade and Investment.

Npower News Today Monday June 10th 2024

According to Npower News Monday June 10th 2024, the Npower national coordinator has taken to the National Association of Npower Beneficiaries Facebook page to announce that there is currently no update at the moment and if there is an update it will be made known to beneficiaries of Npower batch c.

Npower beneficiaries of Npower batch c should kindly note that payment to Npower Batch C beneficiaries will only start when the suspension of Npower is lifted, only one out of the four components of the National Social Investment Programmes has been lifted which is the conditional cash transfer programme other National Social Investment Programmes such as Npower, National Home Grown School Feeding Programme, Government Enterprise Empowerment Programme are yet to be lifted. The national social investment programmes which includes Npower was suspended because of an alleged fraud by Betta Edu the then Minister for Humanitarian Affairs and Poverty Alleviation. Although there are speculations that the suspension of Npower will be lifted this month and Npower payment will commence this month, but the truth is that Npower cannot start until the investigation is concluded, once the investigation is concluded then Npower will start and payment will be made to Npower batch c beneficiaries. Beneficiaries of Npower under the graduate categories and undergraduate categories are advised to exercise patience as they await their Npower payment.

Eighty One Thousand Residents To Benefit from Federal Government’s Conditional Cash Transfer In Ondo

No fewer than eighty one thousand residents of Ondo State are to benefit from the Federal Government’s Conditional Cash Transfer programme.

Mrs Tosin Olupona, Manager, Ondo Conditional Cash Transfer, office of the Public and Intergovernmental Relations, made this known on Wednesday in Akure during a training programme for local government conditional cash transfer facilitator.

Recall that the training was organised in conjunction with the Federal Ministry of Humanitarian Affairs and Poverty Alleviation and the National Social Investment Programmes Agency.

According to Mrs Tosin Olupona, each of the beneficiaries would receive the sum of ₦25,000 conditional cash transfer each for three months.

Mrs Tosin Olupona said the conditional cash transfer programme was for the poor households, adding that in the past the state had only twelve thousand beneficiaries.

”Now it has been increased to eighty one thousand in line with the renewed hope agenda of the present government.

“The benefit is to cushion the effect of removal of fuel subsidy. It is an economic shock response, because the fact remains that nobody is finding it easy now, particularly the poor and vulnerable households.

“The FG has started paying them ₦25,000, and they are going to take this for three months, after which they will exited the conditional cash transfer programme and another set of people will benefit from the conditional cash transfer programme.

Mrs Tosin Olupona disclosed that the beneficiaries for the conditional cash transfer programme were drawn from the National Social Register and their BVN and NIN were linked for accountability, with the money paid directly into beneficiary’s account.

Similarly, the Administrative Secretary, Office of Public and Intergovernmental Relations, Mrs Yemi Pirisola, said the public should have knowledge about the activities of the Agency.

Mrs Yemi Pirisola, urged the desk officers and beneficiaries of the conditional cash transfer programme to let people know about what the government was doing and steps taking to cushion the effect of the removal of fuel subsidy and improving the lives of the vulnerable people.

Source: https://www.vanguardngr.com/2024/06/81000-residents-to-benefit-from-fgs-cash-transfer-in-ondo/

Federal Government of Nigeria Gives ₦60,000,000 Federal Government Grant To One Hundred And Twenty Nigerians With Viable Business Plans

The Federal Government has given a federal government grant of ₦500,000 each to one hundred and twenty participants of its “Unlock Training Programme” organized by the office of the Senior Special Assistant to the President on Technical, Vocational and Entrepreneurship Education, Madam Abiola Arogundade.

At the federal government grant award ceremony which had several ministers and top presidential aides in attendance on Saturday in Abuja, Madam Abiola Arogundade said deserving participants will also be given Solar Kiosks as well as a Certificate of Completion.

According to Madam Abiola Arogundade, the idea is to help expand employment and ensure optimum growth and development of the economy.

Madam Abiola Arogundade said the solar kiosks are designed for hairdressing, catering and food vending and some for general purposes, adding that aside from the aforementioned professional uses, the kiosks are also equipped with sockets for phone charging and spaces for Points of Sales POS terminals and other businesses.

Madam Abiola Arogundade said; “The Unlock Training Programme was the outcome of a six-week Campaign initiated by my office during which Nigerian youths were asked to record and submit a one-minute video on their current technical, vocational and entrepreneurship skills, what their plans are for the future on such skills and how they want government to assist them achieve their plans. The purpose was to boost their potentials for economic development.

“At the end of that campaign, we trained about 10,000 participants in a 10-day intensive training session on how to write and execute Business Plans.

“During the programme, both online and physical participants were trained on the components of a good Business Plan including Executive Summary, Business Overview and Marketing Strategies, Pricing, Money Management and Risks, among others.

“After the course, participants were asked to write and submit Business Plans. Today, we are giving out ₦500,000 grants each to one hundred and twenty winners with the best Business Plans.

“We are also giving out honourary awards to eighty persons seen to be doing very well in their Technical, Vocational and Entrepreneurship skills but need support to upscale their businesses. We also promised to give Certificates of Completion to all participants who completed the training and to assist participants, especially new start-ups, to register their companies. Today, we are here to fulfill those promises”.

Madam Abiola Arogundade said Staff of the Corporate Affairs Commission were on hand to issue incorporation certificates to the participants, while staff of a commercial bank were also on ground to credit the accounts of beneficiaries.

“I am here to assure you that the President, Asiwaju Bola Ahmed Tinubu is thinking about you, not just because of this programme but because of the numerous initiatives he is creating across the country to promote technical, vocational and entrepreneurship skills.

“An example of this is the inclusion of technical, vocational and entrepreneurship skills in the Students Loans, inauguration of Skills Council in the Presidency, Human Capital Development Council, in collaboration with the Governors under the National Economic Council, SUPA (Skill-Up Artisans), ITF and numerous others.

“We will like to also say that this is one of our many programmes in supporting skills and enterprise and we intend to continue to do so in our office. So if you are not a winner today, please continue to apply to participate in our future programmes”, Madam Abiola Arogundade added.

Source: https://www.vanguardngr.com/2024/06/81000-residents-to-benefit-from-fgs-cash-transfer-in-ondo/