Reps propose interest-free loans for indigent students
MAY 3, 2013
Hon. Femi Gbajabiamila
A bill to provide easy access to higher education for Nigerians passed second reading at the House of Representatives on Thursday.
Its objective is to provide interest-free loans to students seeking higher education, particularly those from poor homes.
To achieve this, the sponsor and Minority Leader of the House, Mr. Femi Gbajabiamila, explained that it would repeal the existing Nigerian Education Bank Act and re-enact a ‘New Nigerian Education Bank’ to provide interest-free loans to students.
Gbajabiamila noted that whereas Section 18 of the 1999 Constitution guaranteed education for all Nigerians, many youths, in practice, were out of school in the country because they could not afford to pay the fees charged by institutions.
He said, “Education should be seen as a right for Nigerians and not a privilege; payment of school fees is a major impediment to higher education in this country.
“Many indigent students lose their admissions to higher institutions due to lack of funds to pay fees.
“This bill is an investment in the future of our country; this is one way of giving real dividends of democracy to our people.”
According to Gbajabiamila, the bill defines an indigent student as one from a family whose annual income is “less than N500,000.”
The bill proposes that the repayment of the loan would start three years after a beneficiary must have completed the National Youth Service Corps programme and employed.
A member from Anambra State, Mr. Fort Dike, supported the bill, describing it as “very innovative.”
He noted that if Nigeria could not give its citizens free education, it could at least give them loans to go to school.
“If we have failed to provide free education or scholarship to our youths, let us provide loans that are repayable after they have completed their higher education and are in gainful employment,” he said.
Mr. Chninenye Ike and Ms Nnena Ukeje, both from Abia State, also supported the bill, but expressed reservations over its implementation.
Ike recalled that such loans provided in the past were never repaid, a development that led to the collapse of earlier schemes.
“This is supposed to be a revolving scheme where you benefit and repay so that the scheme can continue to serve others.
“But, in the past, many people simply did not repay such funds made available to them,” he told his colleagues.
Ukeje called for mechanisms in the bill that would define the repayment terms, including tasking government to create the enabling environment for graduate beneficiaries to get jobs.
The bill passed second reading in a unanimous voice vote at the session, which was presided over by the Deputy Speaker, Mr. Emeka Ihedioha.
A public hearing will follow next where stakeholders will dissect the bill.
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