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Nigeria’s Student Loan Initiative: Progress, Pitfalls, and Solutions

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The launch of the Student Loan Programme in Nigeria, coupled with the endorsement of its Amendment bill by the administration under President Bola Tinubu, signifies a promising step towards revitalizing the nation’s education sector.

This initiative holds the potential to revolutionize the educational landscape and empower Nigerian youth, paving the way for a brighter future.

It is gratifying to note that the Federal Government has allocated five billion naira (N5bn) in 2023 supplementary appropriations and fifty billion naira (N50bn) in the 2024 budget.

However, the lack of disbursement of the loans despite the allocation of significant funds raises concerns about the effectiveness of the implementation strategies, particularly the committee-based management approach outlined in the law.

The truth of the matter is that the student loan concept is a noble and much-needed initiative by the current administration to improve access to quality Education for indigent students but may likely fail because of a lack of a well-thought-out implementation structure and operational frameworks.

Overview of Management, and Administration of the Student Loan Fund in accordance with Student Loans Acts 2023

The fund is to be domiciled in the Central Bank of Nigeria (CBN) and managed by an 11-person special committee chaired by the CBN governor, as the law stipulates in Section 5.

The special committee consists of the CBN governor as chairperson and a secretary to be appointed by the chairperson.

Membership of the committee as dictated by the law includes the ministers responsible for Education and finance, or the latter’s representatives, and the Auditor-General of the Federation.

Other members are the Chairman, the National Universities Commission (NUC), a representative of the forum of university Vice Chancellors, a representative of the forum of polytechnic Rectors, and the forum of Provosts of all Colleges of Education in the country.

Also, a representative of the Nigeria Labour Congress (NLC), a representative of the Nigerian Bar Association (NBA), and a representative of the Academic Staff Union of Universities (ASUU) are members.

This committee is saddled with the responsibility of deciding the broad modalities, including the process of application for the loan, qualification criteria to get the loan, and also the repayment plan among other details.

“The Committee shall establish regulations and guidelines for the management, administration, disbursement, and recoupment of students’ loans under this Act, and all stakeholders, including parents, the beneficiaries of the students’ loans, and the deposit banks, shall comply with the regulations and guidelines,” Section 5(5) states.”

Section 5 (2) of the Act also states that the fund “shall be domiciled with, managed, and administered by the Central Bank of Nigeria through the money deposit banks in Nigeria for the purpose set out under Section 6 of this Act.”

Meanwhile, the tenure of each member lasts through the time he/she holds the position. As soon as he/she is replaced or retired, the successor takes his/her position in the special committee, Section 8 states.

A member also ceases to be a part of the committee when he/she becomes bankrupt, convicted of a felony or any offence involving dishonesty or fraud, becomes of unsound mind, or is incapable, for any reason, of discharging his/her duties.

The Flaws of the Committee-Based Implementation Model for Nigeria Student Loans:

The committee structure outlined for managing the student loan programme in Nigeria may encounter several challenges that could hinder its effectiveness.

The federal government should rework the proposed student loan administration and management framework as encapsulated in the Acts. While there is nothing wrong with the caliber of people included in the committee, such a committee should be upgraded to a “Governing Board” to perform oversight and provide strategic leadership and corporate governance for the management of the loan, and not be involved in the day-to-day running the loan disbursement operations under a new agency called “Nigeria Student Loans Management Agency” (NSLMA).

In my view, administering a newly established student loan by a committee headed by the CBN Governor instead of establishing a Nigerian student loan agency or commission like the US Department of Education’s Federal Student Aid (FSA) and the Student Loan Company (SLC) as being practiced in the US and the UK may lead to several potential problems.

Firstly, the committee may lack the necessary expertise and experience in managing student loans, thereby resulting in inefficiencies and unoptimised processes.

Also, without a dedicated agency or commission, there may be a lack of accountability and transparency in the loan administration process.

Additionally, the absence of a specialised student loan entity could lead to delays in loan disbursement, inadequate support services for borrowers, and inconsistencies in loan policies and procedures.

Furthermore, the diverse composition of the committee, including government officials, education stakeholders, and union representatives, could lead to conflicting interests and slow decision-making processes.

Lastly, the lack of a specialised focus on student loan management within the committee may result in inefficient operations and delayed disbursement of loans.

Successful Student Loan Management Model: Comparative Analysis

In countries like the United Kingdom and the United States, successful student loan programmes are managed by dedicated agencies with specific expertise in financial aid disbursement. For instance, the United Kingdom established the Student Loans Company (SLC) who administer student loans efficiently. Similarly, the U.S. Department of Education’s Federal Student Aid (FSA) manages federal student loans effectively through streamlined processes and specialised resources.

Here are the website links for the government student loan management agencies in the US and the UK: United States: U.S. Department of Education’s Federal Student Aid (FSA): https://studentaid.gov/

FSA manages federal student loans in the US, including direct loans, PLUS loans, and federal Perkins loans.

United Kingdom:

Student Loans Company (SLC): https://www.gov.uk/student-finance

SLC handles student loans and grants for students in England, Scotland, Wales, and Northern Ireland.

Advocating for a Dedicated Student Loans Agency to Manage Nigerian Student Loans:

(Appeal for Review and Action: The Way Forward)

1. To ensure the success of the student loan programme in Nigeria, the implementation model needs to shift towards establishing a dedicated agency such as the Nigeria Student Loans Management Agency (NSLMA).

This agency would be solely focused on managing student loans, with a clear mandate and expertise in loan administration. By emulating successful models from countries like the United Kingdom’s Student Loans Company (SLC) and the United States’ U.S. Department of Education’s Federal Student Aid (FSA), as earlier emphasized Nigeria can streamline loan disbursement processes, this will enhance transparency, and improve efficiency in managing student loans.

2 In light of the potential challenges posed by the current committee-based implementation model for the student loan programme, it is crucial for the Nigerian government to reevaluate its approach. A call is made to President Bola Tinubu and the National Assembly to consider amending the existing legislation to establish the Nigeria Student Loans Management Agency (NSLMA) for the effective management of student loans.

3. The Federal Government should set up a panel and committee to visit and study US-FAS and the UK student loan companies to gain insight into their operations.

4. The Federal Government should consider establishing the Nigeria Student Loans Management Agency (NSLMA) to be managed by top-notch professionals in order to guarantee the loan’s scheme effectiveness, proper accountability, easy access to the loans by the students, and overall sustainability of the scheme.

5. To address the shortcomings of the committee-based model in Nigeria, the establishment of the Nigeria Student Loans Management Agency (NSLMA) is hereby proposed. The NSLMA would serve as an independent agency solely dedicated to managing student loans in the country.

Key Functions of NSLMA:

Loan Disbursement: The NSLMA would be responsible for overseeing the disbursement of student loans in a timely and efficient manner.

(a) Loan Administration: Managing the administrative processes related to student loan applications, approvals, and repayments.

(b) Regulatory Oversight: Ensuring compliance with regulations and guidelines related to student loan management.

(c) Stakeholder Engagement: Collaborating with Educational institutions, financial institutions, and student associations to enhance the effectiveness of the student loan programme.

(d) Evaluating loan applications and determining eligibility criteria

(e) Providing financial counseling and support services to loan beneficiaries

(f) Monitoring loan performance and enforcing repayment agreements

Composition and Structure of NSLMA:

1. Governing Board: Comprising individuals with expertise in finance, education, and governance, the Board would provide strategic direction and oversight to the NSLMA. The current management compositions as stipulated in the Loan Acts 2023 can be upgraded or converted to the Governing Board.

2. Executive Leadership: A dedicated team of professionals, including a Chief Executive Officer and key executives, would be responsible for day-to-day operations and decision-making.

3. Specialised Departments: Divisions focusing on loan processing, customer service, compliance, and data management would ensure the efficient functioning of the NSLMA

Parting Words:

The success of Nigeria’s Student Loan Programme hinges on the effectiveness of its implementation strategies. By recognising the limitations of the committee-based model and advocating for the establishment of a dedicated student loan agency, Nigeria can overcome obstacles and pave the way for a more inclusive and sustainable education financing system.

It is time for Nigeria to prioritise the needs of its students and invest in a robust and independent student loan management agency to drive positive change in the Education sector.

 

 

Oroge is the Chief Executive Officer of Debt Doctors Consulting Services International Limited, a firm specializing in credit, debt, and financial advisory services.

He can be contacted via WhatsApp at 08023551457 or by email at saoprofessional@yahoo.com.

 

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Beyond the Blackboard: How Akinde Aremu is Reshaping Federal Polytechnic Ilaro

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Dr. Akinde Aremu

In a world that is increasingly dependent on sound financial expertise and innovative management practices, illuminating figures are crucial for the academic and professional growth of a nation. One such figure is Dr. Akinde Mukail Aremu, the esteemed Rector of the Federal Polytechnic, Ilaro in Ogun State. With an impressive academic background and a commitment to excellence in education, Dr. Akinde is not just shaping the minds of future financial leaders; he is also positioning the institution at the forefront of Nigeria’s educational landscape.

A Legacy of Academic Excellence

Dr. Akinde’s academic journey is nothing short of remarkable. With multiple degrees—a Bachelor’s and Master’s in Economics, a Master’s in Finance, and a PhD in Finance—his expertise spans across vital fields like Financial Management, Business Finance, and Financial Accounting. His position as the Chief Lecturer in the School of Management Studies at the Federal Polytechnic is a testament to his commitment and passion for education. Dr. Akinde’s rich academic fabric is woven with numerous publications in reputable journals, exploring key issues from stock market performance to the complexities of financial reporting standards in Nigeria.

His research interests primarily lie in finance and financial analyses, where he tirelessly seeks to address pertinent economic questions, providing insights that resonate deeply within the Nigerian financial landscape. His studies not only contribute to academic discourse but also guide policy-making in the financial realm, fostering a better understanding of economic development in Nigeria.

Championing Innovative Pedagogy

As a dedicated educator, Dr. Akinde has consistently advocated for modern pedagogical methods that inspire creativity and critical thinking among students. His teaching areas encompass crucial subjects that equip students with the financial acumen needed in today’s dynamic economic environment. By incorporating practical examples and real-life scenarios into his curriculum, he ensures that students are not just passive recipients of knowledge but active participants in their learning journey. His hands-on approach is fostering a generation of finance professionals ready to tackle the challenges of the industry head-on.

Elevating the Institution to New Heights

Under Dr. Akinde’s leadership, the Federal Polytechnic, Ilaro, is experiencing a renaissance. His vision for the institution is clear: to provide quality education that meets the benchmark of global standards. His strategic initiatives have led to the establishment of innovative programs that align with market needs, ensuring that graduates are not only employable but also ready to lead. His emphasis on human capital investment and sustainable economic strategies positions the institution as a beacon of hope for Nigeria’s future.

Furthermore, Dr. Akinde’s efforts extend beyond the classroom. His participation in international conferences and collaboration with academic institutions worldwide has spotlighted the Federal Polytechnic on a global stage. By fostering partnerships and exchanging knowledge with global thought leaders, he is silencing the cynics and proving that Nigerian institutions can compete on an international level.

A Voice for Change and Development

Beyond academia, Dr. Akinde is a vocal advocate for fiscal responsibility and policy reform in Nigeria. His extensive research publications reflect a commitment to dissecting the intricacies of Nigeria’s financial landscape, addressing critical issues ranging from foreign direct investment to the implications of tourism development on economic growth. His work sheds light on the pivotal role that education and informed fiscal practices play in Nigeria’s quest for economic revival.

Dr. Akinde understands that his role transcends academia; he is a mentor, an innovator, and a change-maker. His unwavering dedication to equipping the next generation of leaders with the skills and knowledge they need to thrive in an increasingly complex world is evident in every initiative he undertakes.

In conclusion, Dr. Akinde Mukail Aremu’s leadership at the Federal Polytechnic, Ilaro is redefining the educational landscape of Nigeria. His commitment to academic excellence, innovative pedagogy, and social responsibility serves as an inspiration for students and educators alike. As he continues to shape the future of financial education in Nigeria, there is little doubt that Dr. Akinde is not just preparing students for jobs—he is preparing them to become the architects of the nation’s economic future. In a rapidly evolving global economy, his vision and leadership will undoubtedly leave an indelible mark on the educational sector and beyond.

 

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El-Rufai’s SDP Gambit: A Political ‘Harakiri’ | By Adeniyi Olowofela

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Former Governor of Kaduna State, Nasir Ahmad El-Rufai, is a restless and courageous politician. However, he ought to have learned political patience from President Bola Ahmed Tinubu, who spent years building a viable political alternative to the Peoples Democratic Party (PDP) when its stalwarts boasted that they would rule Nigeria for 64 years.

Cleverly, Tinubu abandoned the Alliance for Democracy (AD) to establish another political platform, the Action Congress (AC), which later metamorphosed into the Action Congress of Nigeria (ACN).

In collaboration with other political groups—including the Congress for Progressive Change (CPC) and some elements of the PDP—the All Progressives Congress (APC) was born, with El-Rufai as one of its foundation members. Ultimately, the APC wrestled power from the PDP, truncating its 64-year dominance plan.

For El-Rufai to abandon the APC now is nothing short of political suicide, as Tinubu is strategically positioned to secure a second term with an array of both seen and unseen political foot soldiers.

The Social Democratic Party (SDP), as a political entity, effectively died with the late Moshood Kashimawo Olawale (MKO) Abiola. Any attempt to resurrect it is an exercise in futility.

For the sake of argument, let’s consider a hypothetical scenario: Suppose another southern politician is fielded in 2027 and wins the election. Even if he signs an agreement to serve only one term, political realities could shift, and he may seek another four years.

If anyone doubts this, they should ask former Presidents Olusegun Obasanjo and Goodluck Jonathan. The simple implication of this is that President Tinubu remains the best candidate for northern politicians seeking a power shift back to the North in 2031—at which point El-Rufai could have been one of the credible northern contenders for the presidency.

When Ebenezer Babatope (Ebino Topsy), a staunch Awoist, chose to serve in General Sani Abacha’s regime, he later reflected on his decision, saying: “I have eaten the forbidden fruit, and it will haunt me till the end of my life.”

By abandoning the APC for another political party, El-Rufai has also eaten the forbidden fruit. Only time will tell if it will haunt him or not.

However, for some of the political leaders already contacted from the South West, supporting any party against President Tinubu would be akin to Judas Iscariot’s betrayal—a reputation no serious South West politician would want to bear.

El-Rufai’s departure from the APC to SDP is nothing short of a suicidal political move, reminiscent of Harakiri.

Prof. Adeniyi Olowofela, a former Oyo State Commissioner for Education, Science, and Technology and the Commissioner representing Oyo State at the Federal Character Commission (FCC), sent this piece from Abuja, the nation’s capital.

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Akpabio vs. Natasha: Too Many Wrongs Don’t Make A Right

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For most of last week, Senate President Godswill Akpabio was in the eye of the storm as his traducer, Senator Natasha Akpoti-Uduaghan, who represents Kogi Central, was relentless in getting her voice hear loud and clear.

Though the matter eventually culminated in the suspension of the Kogi senator for six months on Thursday, it is clear that the drama has not ended yet. The whole saga, as we have seen in the last few weeks, smacks many wrongs and few rights. The Senate scored some rights and some wrongs, the same for the Kogi senator. But in apportioning the rights and the wrongs, we have to distinguish between emotions and the rules.

Recall that in July of 2024, Senator Akpabio had compared the conduct of Senator Akpoti-Uduaghan to that of someone in a nightclub. That statement incensed the Kogi Central senator, the womenfolk, and a number of other senators. Days later, Akpabio, having sensed the mood of the Senate, spoke from his chair and said: “I will not intentionally denigrate any woman and always pray the God will uplift women, Distinguished Senator Natasha, I want to apologise to you.” That was expected of him and by that statement, Akpabio brought some calm into the relationship between him and the Kogi senator, but as we are to discover in the last two weeks, still waters do run fast under the surface.

The latest scene of the drama started with what looked like an innocuous development on the Senate floor. The Senate president, in exercise of the power conferred on him by the 1999 Constitution (as amended) and the Senate Rule book, made adjustments to the seats in the minority wing of the chamber and relocated Senator Akpoti-Uduaghan. The excuse was that following the defection of some senators from the minority side, seat adjustments had to be effected. That was within Akpabio’s power. Remember that the Senate Rule book does not only empower the Senate president to allocate seats, but he can also change the seats occasionally. So, Akpabio was right with that action. But perhaps Akpoti-Uduaghan, based on family relationships with the Akpabios, expected that she would have been alerted of the impending seat change. And on getting to the floor of the Senate to discover the seat switch, she got alarmed. Was she right to flare up? No, that is the answer. Apart from the powers of the Senate president to change seats allocated to senators, the rule book also says that every senator must speak from the seat allocated. The implication is that anything a senator says outside the allocated seat will not go into the Senate records. The Senate, or any parliament for that matter, is a regulated environment. The Hansards take records of every word and action made on the floor of the chamber. And so, it is incumbent on every senator to follow the rules.

So, on Thursday, February 20, when Senator Akpoti-Uduaghan raised hell over her seat relocation and engaged Senator Akpabio in a shouting match, she was on the wrong side of the Senate Rule book. No Senator is expected to be unruly. In fact, unruly conduct can be summarily punished by the presiding officer. It is important to note that the rules of the Senate treat the occupier of the chair of Senate President like a golden egg. The President of the Senate is the number three citizen in the country, even though he was elected to represent a constituency like his colleagues. He is first among equals, but the numero uno position comes with a lot of difference.

A legislative expert once told me that the Chair of the President of the Senate must be revered at all times and that infractions to the rules are heavily punished unless the offender shows penitence. The rule says the President of the Senate must be heard in silence; Senators must avoid naming (being called out for unruly conduct); and that any situation that compels the President of the Senate to rise up to hit the gavel in trying to restore order could earn the culprit (any named senator) summary dismissal. Those are the powers of the President of the Senate, which Madam Natasha was trying for size. I think it is important that Senators are taken through inductions on the rules and regulations, whether they got in mid-term or at the beginning of the session.

Rules are very key to operations in a big club like the Senate or the House of Representatives. But as we will later discover on this page, the number of years spent on the floor does not necessarily guarantee a clear understanding of the rules.

Well, as we saw it, Senator Akpoti-Uduaghan raised hell by protesting the decision of the Senate to relocate her seat. She was out of order, and her colleagues noted the same. With another presiding officer, she could have been suspended right there. But Akpabio didn’t do that. Then, the Kogi Central senator opened another flank, this time, outside of the Senate chamber. She granted an interview to Arise television, claiming that she had been sexually harassed by Akpabio. Here, too, Senator Natasha was on the wrong side of the Senate rules. Yes, she has a right of freedom of speech, but if the right must be meaningfully exercised, she must do so in compliance with the rules of the club she belongs-the Senate. This is expressly so because she is covered by Order 10 of the Senate Rule Book, which permits her to raise issues of privilege without previously notifying the President of the Senate or the presiding officer. The elders and the holy books also say that when you remove the log from the eyes, you show it to the eyes. As a club, the senate detests the washing of its dirty linen in the public. Such conduct led to the suspension of the late Senators Arthur Nzeribe and Joseph Waku, as well as Senator Ovie Omo-Agege, Senator Ali Ndume and even Senator Abdul Ningi in recent past.

Rather than go to the court of public opinion to accuse Akpabio of sexual harassment, Senator Akpoti-Uduaghan should have quietly assumed the seat allocated to her, raise her complaints through Order 10 and at the same time tender details of her sexual harassment allegation against Akpabio and seek Senate’s intervention. If she had done that, she would have been on the right side of Senate Rules and had Akpabio by the balls. As much as the Senate rules forbid a senator from submitting a petition he or she personally signed, the Senate does not forbid any lawmaker from raising allegations that affect either their rights or privileges on the floor. Several newspaper editors have been summoned before the Ethics Committee to answer questions of alleged breach of the privilege of senators. I recall that as correspondents in the chamber, senators were always unhappy each time we scooped a story or blow open a report they were about to submit. Such senators didn’t need to write a petition. They would only come to the floor and raise points of order on privilege. Senator Akpoti- Uduaghan failed to do that.

But the conduct of the Senate President and some of the principal officers on Wednesday, March 5, left so much to be desired of the Senate. I was shocked to see Senator Akpabio rule Senator Natasha in order; he also ruled Senator Mohammed Monguno in order as well as Senator Opeyemi Bamidele. How do you have three right rulings on one issue? First, he allowed Senator Natasha to lay a defective petition on the Senate table. That’s expressly out of order. In the days of Senate Presidents David Mark, Bukola Saraki, and Ahmad Lawan, we saw how such scenes were handled. A David Mark would simply ask the senator, ‘Distinguished Senator, please open to Order 40(4) and read’. By the time the senator finished reading the order and seeing the order had negatived his or her motion, he would only be begging to withdraw that motion. That was not the case with Akpabio. And to make matters worse, the clerks at the table were also looking lost. They could not guide the presiding officer in any way. That tells a bit about human resource capacity in the assembly. But then the Senate Leader, Opeyemi Bamidele and the Chief Whip, Mohammed Monguno, who have spent quite a long time in the National Assembly, should know better. Their interventions did more damage to Akpabio’s Senate. Once the President of the Senate had ruled Senator Natasha in order to submit a petition she personally signed, (against the rules of the Senate which forbids such), and the Kogi Central senator had approached the chair and laid the petition on the table, the matter in a way becomes sub judice, to borrow the language of the law. The Senate Rule Book classifies such an action as “Matters Not open to Debate.” So at that point, the matter was no longer open to debate. Since the gavel has been hit and the action has been taken, no senator has the right to reopen the case. It was wrong of Senator Bamidele and Monguno to immediately start to revisit a closed matter, and that’s illegal. It is wrong for Akpabio to allow it.

I recall an incident in the 6th Senate when President Umaru Yar’Adua was bedridden in Saudi Arabia. Some senators moved a motion, seeking the Senate to constitute a panel to visit Saudi and ascertain the health status of the president. Somehow, when the motion was finally passed on a day, Senator Ike Ekweremadu presided, it turned out that the motion only mandated the Federal Executive Council to do the assignment. The original proponents of the motion were enraged, but they were not allowed to reopen the matter. They had to go into lobbying and eventually secured signatures of two-thirds of the Senate to re-table the matter and that paved the way for the adoption of the famous “Doctrine of Necessity.” That’s how serious the matter should be handled, but it was trivialized by Akpabio, the Senate Leader and Senate Whip. That’s on the wrong side of the rule.

Now that Senator Akpoti-Uduaghan has been suspended, many would say she was being silenced. That is far from the truth. Her suspension was on the basis of what the senate perceived as unruly behavior on the floor. We are yet to hear the details of her sexual harassment allegations, and I believe that she has avenues to ventilate that. Nigerians earnestly await these details, which should be salacious enough to help us cool off some heat.

 

 

 

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