The Federal Executive Council (FEC) has proposed a bill to allocate 30% of the funds received by the Tertiary Education Trust Fund (TETFund) to the Nigerian Education Loan Fund.
This initiative aims to amend Section 3 of the TETFund Act No. 16, 2011, which establishes the fund.
During a briefing at the Aso Rock Villa on Wednesday, Special Adviser to the President on Information and Strategy, Bayo Onanuga, announced that this provision, part of the omnibus Economic Stabilisation Bills (2024), was approved by the Council for submission to the National Assembly.
If approved, TETFund will be required to set aside 30% of its allocations from the Federation Account specifically to support the Student Loan Scheme. The bill states, “The Fund shall, before disbursement of the amount in the Fund, set aside in each year one-third of the amount to be transferred to the Nigerian Education Loan Fund established under the Students Loans (Access to Higher Education) Act.”
Additionally, the proposed legislation introduces a five percent cap on TETFund’s annual administration costs, ensuring that no more than five percent of total funds from the previous year can be used for administrative purposes.
This includes costs related to management, maintenance of properties, and other approved expenditures.
Onanuga explained that the proposed changes would create a sustainable funding stream for student loans. “Most of the funding will now come from the money going to TETFund,” he stated, emphasizing the importance of this allocation in providing financial support to students.
He further clarified that while 30% of TETFund’s income will support the Nigerian Education Loan Fund, the remaining five percent will be reserved for TETFund’s operational needs. “TETFund cannot just be building facilities without ensuring that students have access to the necessary loans to utilize those resources,” Onanuga added.
He also noted that this new allocation would be supplementary to existing budgetary provisions from the Nigerian Government for the Nigerian Education Loan Fund, ensuring comprehensive support for students pursuing higher education.
