Connect with us

Opinion

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

Published

on

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.

 

Comments

Opinion

Re: Adekambi vs Alli: Dr. Olanrewaju’s Descent To Soliloquizing | Sola Abegunde

Published

on

 

I have read Dr. Sulaimon Olanrewaju’s piece titled ” Adekambi vs Alli: Between Substance And Sensationalism” and it offers me a lot of entertainment.

Dr. Sulaimon Olanrewaju is a seasoned Journalist no doubt. Very brilliant mind, but, he needs a lecture on politics and governance.

No matter how educated or professional you could be, if you lack basic knowledge about raw politics and governance at different tiers of Government, you are bound to struggle like a fish out of the water each time you attempt to defend certain positions.

Very obviously, Dr. Olanrewaju doesn’t know how a Local Government should operate on a normal situation, even, before the Judgment of the Supreme Court obtained by president Bola Ahmed Tinubu.

I will refer Dr. Olanrewaju to a document titled ” Financial Memorandum for Local Governments”.

That document speaks to how funds belonging to the Local Governments could be legally spent.

It will also provide accurate information about the roles and powers of the Local Government Chairmen, Head of Local Government Administration, the Finance and General Purposes Committee, F&GPC, how approvals for funds, projects and how contracts are signed at the Local Government level.

Had it been that Dr. Olanrewaju had proper information, I am sure that he wouldn’t have advertised his ignorance the way he did, in the argument about Financial autonomy for Local Governments which Senator Sarafadeen Abiodun Alli is promising.

He would also have known that his Principal, Governor Seyi Makinde had been engaged in criminal activities in the manner he had been withdrawing and spending resources belonging to the 33 Local Governments illegally since 2019.

Perhaps I need to repeat this for emphasis sake. There is no Law that empowers a state Governor to withdraw money belonging to the Local Governments for the execution of projects on behalf of the Local Governments.

The fact that the monthly allocations for the 33 Local Governments would have to drop on a joint account does not confer any authority on a state Governor to illegally withdraw and spend same.

It is the responsibility of the F&GPC for each of the Local Governments to identify projects it wants to execute, approve funds for same and if the funds are beyond the approving limits of the F&GPC, it will seek approval from the Governor through the office of the Commissioner for Local Governments.

If the project would be executed as a contract, it is the sole responsibility of the HLGA to sign the contract agreement.

That is what Senator Sarafadeen Abiodun Alli is saying. That he would not make illegal withdrawals from the Local Governments funds. That he will allow the F&GPC for the 33 Local Governments to function without hinderance. That he will allow the Career officers to do their duties assigned to them by Law.

If Governor Seyi Makinde doesn’t believe in the existence of the Local Governments and he is not hiding this fact and Sarafa Alli is saying, I believe in a functional and free Local Government, where is the sensationalism in that?

Truth hurts. Dr. Olanrewaju can not, through his essay, which I consider an afterthought, rewrite the fact that, his Principal publicly declared that he doesn’t believe in the existence of the Local Governments, not to talk of allowing them to function freely.

I am surprised that Dr. Olanrewaju is of the opinion that Senator Sarafadeen Abiodun Alli is not saying what he would do differently.

I know that the Special Adviser on Media to Governor Seyi Makinde is not deaf. Neither is he blind or dumb. He is only being hypocritical.

How else does the Allied People’s Movement, APM and its Gubernatorial candidate want the All Progressives Congress, APC Gubernatorial candidate to say what he is going to do differently?

On this issue of Financial autonomy for Local Governments, Sarafadeen Alli is saying, contrary to the illegalities of the past seven years plus, he will not concern himself with the responsibilities that are ordinarily that of the Local Governments.

On Education, he has declared that he will ensure that we go back to the 30 Pupils per classroom policy of the former Governor, Senator Rasidi Adewolu Ladoja, now, H. I . M, Oba Senator Rasidi Adewolu Ladoja.

He said he will revive the Broadcasting Corporations of Oyo state, BCOS which is gasping for breath under Governor Seyi Makinde.

He was emphatic about the fact that he would set up a Committee to review the crisis created at the Circular Road by Governor Seyi Makinde within 72 hours when he is elected as the Governor of Oyo state.

He said he would review the sales and handing over of our Farm Settlements to Estate Developers amongst other promises.

On these issues, what are the clear positions taken by Adekambi?

If Dr. Olanrewaju wants us to believe his cock and bull stories about the performance of the 33 Local Governments under Seyi Makinde, I challenge him to ask his Principal to publish the statement of income and expenditures for the 33 Local Governments in the past seven years plus.

He should give us a breakdown of the total figure of the monthly allocations received on behalf of the 33 Local Governments, the breakdown of salaries and allowances paid, the number of projects executed, identities of the contractors who handled projects, the contract agreements, total figure of the Internally Generated Revenues, IGR received by the Local Governments and the VAT.

In the absence of these vital information, which I am certain they will never dare to make public, I want to humbly suggest that Dr. Olanrewaju should go and update his knowledge about how certain things are done.

Continue Reading

Opinion

Ladoja @82: When the ladder becomes too tall and Makinde’s sin of ingratitude | By Ayinla Joseph

Published

on

The Yoruba say, when a man forgets the ladder that took him to the top of the iroko tree, the fall that awaits him will be narrated as a proverb.

On Thursday, Ibadan stood still for its king. Oba Rashidi Adewolu Ladoja clocked 82. Not 82 years of mere age, but 82 years of bruises, battles, betrayals and benediction. A former Senator. A former Governor. An elder statesman who, like Oduduwa, returned as king. The following day, Friday, Oba Ladoja also clocked one year on the throne of his forefathers.

Ibadan celebrated him. Nigeria celebrated him. The Presidency sent greetings. Former governors knelt. Serving governors bowed. The Alaafin of Oyo paid tribute. The Soun of Ogbomoso poured libation of words. Even the Aseyin, far in Iseyin, bought a full page in a national daily to say: our father lives.

But in Agodi Government House, there was silence. Cold, deliberate, imperial silence.

Governor Seyi Makinde did not felicitate his king. No advert. No statement. No courtesy of any sort extended. Nothing. His protégé, Bimbo Adekanmbi, toed the same line of contempt. For 48 hours, Ibadan people waited for a word that never came, until shame forced a whisper.

We must ask: what manner of politics is this?

In 2019, it was this same Ladoja who held Makinde’s hand when Makinde had no hand to hold. It was Ladoja who coordinated the coalition, who gathered the angry, the broken and the hopeful, and stitched them into a garment called victory for a man who had never won anything before. Without Ladoja, there would have been no Omituntun in 2019. And the man knows it.

Philosophers call it the Paradox of Power. Machiavelli warned about it in “The Prince”: that power acquired through the mercy of others must be sustained by gratitude, otherwise it consumes itself. Plato called such rulers philosopher-kings who failed philosophy. Men who know how to win power but not how to carry it.

History is littered with them.

Emperor Nero of Rome who burnt the city that made him emperor. King Rehoboam in the Bible who told the elders who made him king: “My little finger shall be thicker than my father’s waist.” Emperor Commodus who thought Rome was his father’s farm and turned the palace into a circus until the circus swallowed him.

Seyi Makinde governs like them — as an emperor, not as an Omoluabi. A man who believes loyalty must flow upwards to him, but must never flow downwards from him. He rides on the shoulders of giants and then complains that the giants are too tall.

Today it is Ladoja he snubs. Yesterday it was the Alaafin. The day before, the Soun. Tomorrow, which Oba will taste his disdain? He has transferred his personal hatred for the Olubadan stool into a war against all royal stools in Oyo State. That is not politics. That is poison.

And what shall we say of Bimbo Adekanmbi, his political son, who has learnt this ignoble art of ingratitude so perfectly? The Yoruba say, “the child who says his mother will not sleep, he too will not sleep.” To watch a man seeking to be governor practise contempt for the throne he seeks to govern is a disaster foretold.

Oyo people know Omituntun 2.0 for what it is — a poisonous pill coated with sweet advertisement. If 2.0 can openly humiliate an 82-year-old first-class monarch who made him, what will Omituntun 3.0, headed by his anointed, do? It will be the unkindest cut of all. It will be the complete desecration of the Omoluabi ethos that Ibadan and Oyo hold sacred.

Seyi Makinde will be remembered. Not for the roads that crack before commissioning. Not for the parks that lead to nowhere. He will be remembered as the governor who rode on the backs of eminent men and made every one of them regret that they ever lent him their shoulders.

Ladoja at 82 needs no advert from Agodi to be great. The king’s greatness is not conferred by the governor. But the governor’s smallness is exposed by how he treats his king.

Oyo people, shine your eyes. This affliction must not rise a second time.

Continue Reading

Opinion

Makinde Deserves No Sympathy: He Brought His Present Predicament Upon Himself

Published

on

In response to my brother, Shuaib Idris, who wrote the piece titled “Seyi Makinde Deserves Our Sympathy,” I submit that Seyi Makinde does not deserve our sympathy. How do you sympathise with somebody who brought political calamity upon himself?

There is a point in every political journey when a leader must pause, look around and ask himself a difficult question: How did I get here? For Governor Seyi Makinde, that moment has long arrived.

Much has been written and said about the governor’s increasingly combative public interventions, his exchanges with political opponents and his determination to market the candidacy of his preferred successor. Some have interpreted these developments as signs of pressure surrounding him. But sympathy, in this circumstance, may be misplaced.

If Governor Makinde is under pressure today, much of that pressure is self-inflicted. If his administration is now being subjected to increasingly intense scrutiny, he cannot reasonably blame those asking the questions. And if political opponents have become emboldened enough to challenge his record openly, he should perhaps examine the decisions and conduct that have created the circumstances in which those challenges are now flourishing.

The governor’s recent political conduct provides ample illustration.

At the 70th birthday celebration of Bishop Francis Wale Oke, the governor reportedly used his appearance to introduce Bimbo Adekanmbi, the APM governorship candidate whom he supports. Adekanmbi’s emergence as the APM candidate is not in dispute; the party adopted him as its consensus candidate in May.

Two things continue to haunt him: his subpar performance in office and what critics describe as his imposition of Adekanmbi and Open Salawu, new entrants into his team, on his “first eleven.”

The question, therefore, is not whether Governor Makinde has the right to support a candidate. He does. The question is why a governor who repeatedly speaks of his administration’s achievements appears increasingly eager to make the 2027 succession contest a personal project.

A governor nearing the end of his tenure should ordinarily be concerned about preserving the dignity of the office, defending his record with facts and allowing his preferred candidate to present his own credentials. Indeed, Adekanmbi himself has publicly said he would not be a political stooge and that he would take responsibility for his own decisions if elected. That is political rhetoric. However, everything about Adekanmbi, according to his critics, points to the possibility of his being a stooge waiting to be planted to do Makinde’s bidding after the latter leaves office in 2027.

Yet Governor Makinde has increasingly inserted himself into the political conversation surrounding his successor. That creates an unavoidable question: if Adekanmbi is sufficiently qualified and politically prepared to succeed him, why does the governor so frequently feel compelled to fight the successor’s battles himself?

This is where the argument about pressure becomes particularly relevant. Political pressure does not simply descend from heaven. It can be generated by the choices of the politician himself.

Consider the recent exchange with Senator Sharafadeen Alli over the legal profession. Governor Makinde reportedly questioned Alli’s experience as a lawyer, arguing that he had never entered a courtroom. Alli’s campaign organisation subsequently responded by detailing his legal background and professional experience.

There is nothing wrong with political candidates examining one another’s records. That is part of democratic competition. But reducing a lawyer’s professional identity to courtroom appearances is a curious line of attack, particularly when the political argument ought ultimately to be about competence, experience, policy and public record.

A lawyer can practise in several areas of the profession without making litigation the centre of his career. Administrative work, corporate practice, legal consultancy, governance and institutional management are among the possible avenues available to members of the profession.

The larger point, however, is this: when an incumbent administration turns the professional credentials of an opponent into a central campaign issue, it invites its own record to be placed under the microscope. So, why does he need to be sympathised with over what he brought upon himself?

The response from Alli’s camp has shifted attention towards questions about Makinde’s own record as an engineer and governor, particularly the controversy surrounding diesel-powered streetlights and the renovation of the Lekan Salami Stadium. Those are now matters of public political debate, with competing claims about expenditure and performance. How do you sympathise with someone who threw a stone and received a Scud missile?

This is the unavoidable consequence of political combat: once you open the door to scrutiny of another man’s credentials, you should expect yours to be examined with equal intensity. Governor Makinde cannot reasonably demand immunity from the same standard he applies to others.

The same principle applies to his much-advertised “first eleven.” If the governor describes his administration as being driven by a carefully assembled team of exceptional people, the public is entitled to ask what became of that team when the question of succession arose. Why was the search for a successor extended beyond this celebrated first eleven?

A football coach who constantly boasts about his first eleven naturally invites the question of who among that eleven can step forward when the captain leaves the field. If none is selected, his team’s fans will ask why. That is not persecution. It is accountability.

There is another issue the governor should confront: political loyalty. Governor Makinde did not arrive at the Government House in 2019 in isolation. His political journey involved alliances with people and groups who contributed to the coalition that eventually produced his victory. The political history of that period is well known and should not be rewritten simply because former allies and associates are now on different sides of the political divide.

The problem with “use and discard” politics is that yesterday’s ally eventually becomes tomorrow’s witness. People who helped build a political structure do not disappear simply because their usefulness has expired. And when they begin speaking, the politician who once relied on them may find himself answering questions he never anticipated.

That appears to be part of the political atmosphere surrounding Governor Makinde today. His confrontation with traditional institutions is another matter that requires careful reflection. Whatever one’s political affiliation, Yoruba traditional institutions occupy a distinctive place in the cultural architecture of Oyo State. Political disagreement with individual traditional rulers is legitimate; treating the institution itself with disdain is entirely wrong, and it raises questions about Makinde’s Omoluabi values.

A governor may disagree with a monarch’s political preference. He may even believe traditional rulers should remain politically neutral. But the language employed in expressing that disagreement matters.

The office of governor carries enormous constitutional authority, but it also carries a moral obligation to exercise restraint. A governor should not need to be reminded that words spoken from Government House do not remain personal words. They acquire the weight of the office. That is why some of Governor Makinde’s recent public exchanges have generated such controversy.

The irony is that political power is temporary, while institutions and relationships often outlive individual office holders. The governor should know this better than most.

He is approaching the end of his constitutionally permitted tenure in Oyo State. The political question before him is therefore not how to remain governor indefinitely, but what legacy he will leave behind. Will he be remembered primarily for the projects executed under his administration? For the policies introduced? For the institutions strengthened? Or increasingly for the political battles fought during the final phase of his tenure? The last question is what will occupy people’s minds most after Makinde has left office.

The most consequential political mistake an incumbent can make is to interpret every criticism as persecution and every opponent as an enemy. Criticism is not necessarily hatred. Opposition is not necessarily sabotage. Questions about public expenditure are not necessarily attacks on a person. And scrutiny of an administration is not evidence of an organised conspiracy.

A mature government answers questions. A confident administration publishes records. A secure political movement allows its candidate to speak. And a governor who believes his record speaks for itself should have little reason to spend every available political moment speaking for his preferred successor.

That is why sympathy for Governor Makinde is evidently misplaced. The political pressure surrounding him today is not simply something that happened to him. It is also the product of political decisions, alliances, rhetoric and strategies that he and his political associates have consciously pursued.

He chose his successor. He chose his political platform. He chose to engage his opponents. He chose to make their records a subject of public debate. He chose to defend his administration through increasingly political exchanges. Those choices have consequences.

The electorate is now watching. And when the people begin to ask questions, the appropriate response from a governor is not to complain about pressure. It is to provide answers. Oyo people do not owe any politician sympathy for the consequences of his political choices. They owe themselves something far more important: a careful examination of every candidate, every record, every promise and every claim before making their decision in 2027.

Continue Reading

Trending