The Academic Staff Union of Universities (ASUU) has called on the Federal Government to reconsider its allocation of 50 billion naira for a student loan scheme and instead convert it into grants.
ASUU President, Emmanuel Osodeke, emphasized the potential hardships graduates may face in repaying loans in a job market where employment isn’t guaranteed.
“If it is just about 50 billion, the Nigerian government should give that 50 billion as grants to the students rather than giving it as a loan that will encumbrance them in the future and could make them start going to crime, in order to pay for this loan,” Osodeke asserted.
The student loan bill, signed into law by Bola Tinubu on June 12, aimed to provide interest-free loans through the Nigerian Education Loan Fund. However, ASUU questioned the practicality of this initiative, given the prevailing economic challenges and the uncertain employment landscape.
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Reflecting on past failures of similar schemes, Osodeke highlighted the economic disparity, stating, “In such a country where you easily have access to a job after graduation cannot pay it back and they are suffering, or people committing suicide.”
As concerns grow over the effectiveness of a 50 billion naira loan, Osodeke raised critical questions about its reach, asking, “How many people will 50 billion go to as a loan?” He further challenged the conditions attached to the loan, particularly for students in rural areas.