Africa (Commonwealth Union) _ Esther Abu and her daughters are excited about a new law in Nigeria that aims to provide loans to economically disadvantaged families to send their children to university. Esther’s youngest daughter, a teenager with a passion for computer engineering, dreams of pursuing higher education but knows her mother’s income as a street sweeper is insufficient to cover university expenses. Esther’s eldest daughter had to forego university and work as a hair stylist to support the family.
President Bola Tinubu, who took office recently, has implemented various reforms at a rapid pace, including ending fuel subsidies, devaluing the currency, and making changes in key government positions. Now, he intends to address the issues plaguing Nigeria’s tertiary education system. Historically, the government has kept tuition fees low to encourage enrollment in a country with high poverty rates and illiteracy levels. However, insufficient government funding has resulted in outdated facilities, overcrowded classrooms, and inadequate compensation for lecturers and staff.
Nigerian universities have been plagued by frequent strikes, with closures lasting for months, disrupting students’ education. This has eroded public confidence in these institutions, leading many students to seek education in expensive private universities or study abroad, particularly in Eastern Europe. With the introduction of loans, President Tinubu aims to give universities the freedom to increase tuition fees, believing that students from poor backgrounds can now afford them. The government asserts that this scheme will promote education accessibility for all Nigerians, irrespective of their socioeconomic backgrounds.
Under the scheme, beneficiaries will receive zero-interest loans, which they will repay through monthly deductions of 10% from their salaries two years after completing a mandatory post-graduate paramilitary service. However, concerns have been raised about the loan’s viability, particularly if graduates are unable to secure employment after completing their studies. Nigeria already faces high unemployment rates, with many graduates unable to find suitable jobs. Students and parents are apprehensive about taking on the burden of loan repayments without guaranteed employment prospects.
The loan scheme has strict eligibility criteria, targeting households with an annual income of less than 500,000 naira. However, the requirements, such as providing bank statements and securing two guarantors, including senior civil servants or experienced lawyers, may be challenging for poor families to meet. Even if the conditions are fulfilled, loan approval is subject to the availability of funds. Critics argue that the loan scheme is not practical and that the majority of students will be unable to meet the requirements.
While tuition fees at some public universities have remained relatively low, students still struggle to afford them. Many students come from low-income families, and their education expenses are covered by parents working as junior civil servants, private security guards, or company drivers. These families often have incomes just above the eligibility threshold, making them ineligible for loans despite their financial struggles.
Additionally, tuition fees have increased significantly in some universities, compounding the financial burden on students and their families. The loan scheme only covers tuition fees, excluding other expenses like accommodation and food, which form a substantial portion of the overall cost of university education. Some argue that if the loans do not cover all expenses, they may not serve their intended purpose.
Critics suggest that rather than focusing on loans, the government should prioritize job creation. The loan scheme’s effectiveness is questioned due to the lack of employment opportunities, additional fees, and uncertainties surrounding consequences for defaulters. For families like Esther Abu’s, vocational training and small-scale jobs may seem like more viable options than pursuing higher education and potentially facing jail if unable to repay loans.
The loan scheme’s success remains uncertain, and concerns persist regarding its feasibility and ability to address the broader challenges facing Nigeria’s education system and its graduates.
