President Bola Tinubu made a significant move on Wednesday by signing into law the Student Loans (Access to Higher Education) Act (Repeal and Re-Enactment) Bill, 2024. This milestone comes after thorough scrutiny by both the Senate and the House of Representatives, who meticulously reviewed the report from the Committee on Tertiary Institutions and TETFund.

The essence of this bill, spearheaded by Senator Bamidele Opeyemi representing Ekiti Central Senatorial District of Ekiti State, is to revamp the execution of the Higher Education Student Loan Scheme in Nigeria. The overarching goal is to address various challenges concerning the management structure of the Nigerian Education Loan Fund, applicant eligibility criteria, loan purposes, funding sources, and disbursement and repayment procedures.

Under this newly enacted legislation, the Nigerian Education Loan Fund (NELFUND) will be established as a distinct legal entity empowered with the authority to engage in legal proceedings and hold assets for fulfilling its mandate. This move enables the Fund to extend loans to eligible Nigerian students, covering tuition, fees, charges, and living expenses incurred during their studies in accredited tertiary institutions and vocational training centers across the nation.

One of the notable changes brought about by this bill is the restructuring of the management framework of the Fund. Unlike the previous arrangement, where the Fund’s administration was overseen by a Special Committee chaired by the Governor of the Central Bank of Nigeria, the new legislation proposes alterations in this aspect.

Furthermore, the bill abolishes the income-based eligibility requirement established by the previous law, which necessitated an annual income below N500,000 for applicants or their families. Instead, it expands the pool of eligible candidates to include students from federally or state-established tertiary institutions and government-approved vocational institutions. Specific eligibility criteria will be delineated by the Fund.

Moreover, unlike its predecessor, which restricted loan applications solely to cover tuition fees, the revised bill permits applicants to seek loans for various institutional charges and maintenance allowances.

This legislative overhaul marks a pivotal moment in Nigeria’s educational landscape, as it endeavors to make higher education more accessible and affordable for aspiring students across the nation.