President Bola Tinubu on Monday, signed the student loan bill into law, at the Presidential Villa in Abuja.
The legislation passed the third reading in the lower chamber in May.
It seeks to provide financial assistance to Nigerian students in tertiary institutions.
The bill was sponsored by Femi Gbajabiamila, immediate-past speaker of the house of representatives.
Dele Alake, a former Lagos commissioner of information and strategy, announced the signing of the bill to state house correspondents.
The legislation allows Nigerian students in tertiary institutions to access interest-free loans from the Nigerian education loan fund.
The legislation provides for the establishment of the Nigerian education bank, which will have the power to administer, supervise, coordinate, and monitor the management of student loans in the country.
Based on the provisions of the legislation, the bank is expected to receive applications for student loans through higher institutions on behalf of the applicants and screen them.