The Federal Executive Council is proposing a bill that would allocate 30 percent of the Tertiary Education Trust Fund (TETFund) to the Student Loan Scheme in Nigeria.

During a briefing at the Aso Rock Villa in Abuja, Mr. Bayo Onanuga, the Special Adviser to the President on Information and Strategy, announced that this initiative aims to amend Section 3 of the TETFund Act No. 16, 2011, which established the fund. If approved by the National Assembly, TETFund will reserve a portion of its annual allocation from the Federation Account specifically to support the Nigerian Education Loan Fund. The bill specifies that one-third of the fund’s disbursement will be directed to the new loan initiative.

In addition to establishing a dedicated funding source for student loans, the proposed legislation also imposes a five percent cap on TETFund’s annual administrative expenses. Onanuga clarified that this limit ensures that the majority of TETFund’s resources are directed towards educational initiatives rather than administrative costs. He emphasized that the funding for the Nigerian Education Loan Fund will primarily come from TETFund’s allocations, which is intended to provide a sustainable financial resource for supporting Nigerian students.

Onanuga further explained that the proposed changes are essential to ensure that investments in educational infrastructure, such as laboratories and assembly houses, are matched by the ability of students to access necessary funding through loans. He assured that this new allocation would complement the Federal Government’s ongoing budgetary support for the Nigerian Education Loan Fund, thereby enhancing educational opportunities for students across the nation.

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