Calling for action, the Academic Staff Union of Universities is advocating for the conversion of Nigerian Educational Loan Fund into grants.
Reacting to the recent announcement of N850 million by NELFUND for disbursement, the National President of ASUU, Prof. Emmanuel Osodeke, expressed his views.
The scheme, backed by a law signed by President Bola Tinubu on April 3, received an initial allocation of N35 billion for commencement.
During a recent address amid ongoing protests, Tinubu mentioned that an additional N46 billion is set for distribution.
The program is anticipated to benefit around 1.2 million students.
NELFUND disclosed that it has already disbursed a total of N1.17 billion to 20,000 students from five public tertiary institutions that applied for the loan.
Osodeke maintained his stance that if the government can allocate N90 billion to certain individuals for Hajj pilgrimage, there should be no hindrance in converting the N35 billion NELFUND loans into grants for students.
He stated, “We do not support any form of student loans. We firmly believe it should be in the form of grants and not loans.
“In a country where significant sums are allocated for Hajj pilgrimage, proposing N35 billion as loans to Nigerian students, who are the future leaders and workforce in various sectors, seems contradictory. Even in regions where student loans exist, there have been cases of drastic measures such as suicides.”
Osodeke emphasized that student loans would only perpetuate financial difficulties for the recipients post-graduation.
“Even in the U.S., where employment opportunities are abundant, the President recently had to waive loans for individuals unable to repay them.
“Implementing loans in Nigeria, where job prospects remain uncertain even a decade or two after graduation, is unjust. They are subjecting impoverished students to additional burdens with loans, which is unjust.
They should reconsider and convert it to grants,” he insisted.