The Federal Government on Monday said that it will fund the Students Loan Programme signed as ‘Access to Higher Education Law’ by the President in June last year, through education tax collectible by the Federal Inland Revenue Service (FIRS).
President Bola Tinubu in October 2023 announced that the loan scheme, which will commence January this year, will put an end to industrial actions in the country’s tertiary institutions and give Nigerian students opportunity to access funds at interest-free rates.
Chairman of the FIRS, Dr. Zacch Adedeji while briefing State House Correspondents at the Presidential Villa, Abuja said, “This is one of the scheme that will apply education tax that we will collect. So, this is a way of being accountable to the taxpayer.”
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According to Adedeji, the purpose of education tax was to consolidate and restore education integrity and quality.
“This is in fulfillment of Mr President’s promise that we will make education accessible to all. And while I have to contribute is because of the source of funding. And in fulfilling that part of the Act, so, that is why education tax fund is one of thr sources of funding,” the FIRS boss added.
Speaking earlier, Executive Secretary of the Student Loan Board, Akintunde Sawyer explained that the programme will soon be launched to become operationalized.
He said the scheme is a great opportunity to help solve an age old problem in the country while assisting many people with great capacity and with the desire to improve their education.
“This intervention will affect the lives of many, many Nigerian youth because that’s usually the bracket as well to further their education. It will impact the lives of many many Nigerian families because the onus to pay for education tends to fall on parents or families,” Sawyer added.
NewsQuest recalls that the student loan bill was sponsored by Femi Gbajabiamila, immediate-past speaker of the House of Representatives who is now chief of staff to the President.
The legislation provides for the establishment of the Nigerian Education Loan Fund, which will have the power to administer, supervise, coordinate, and monitor the management of student loans in the country.
