Group Disagrees with Peter Obi’s Position on Student Loan Scheme

Group Disagrees with Peter Obi’s Position on Student Loan Scheme

The Social Advocacy Front (SAF) has expressed reservations over recent comments by the former presidential candidate of the Labour Party, Peter Obi, regarding the Federal Government’s student loan programme.

In a statement signed by its Chairman, Tahir Ibrahim Tahir, and Secretary, Shehu Attah, the group described Obi’s characterisation of the initiative as “wasteful” as unfortunate, noting that the programme has provided support to many students across the country.

According to SAF, the Nigerian Education Loan Fund (NELFUND) was established to implement the Nigeria Student Loan Scheme signed into law by President Bola Ahmed Tinubu in April 2024.

The group explained that the Fund provides interest-free loans to students in public universities, polytechnics, and colleges of education to cover tuition fees and essential living expenses. The scheme commenced operations in May 2024 and is aimed at reducing financial barriers to tertiary education, particularly for students from low-income backgrounds.

SAF further noted that under the guidelines of the programme, beneficiaries are required to begin repayment only after securing employment and completing the National Youth Service Corps (NYSC). Repayment is capped at a maximum of 10 per cent of the beneficiary’s income.

Providing figures to support its position, the group stated that NELFUND has disbursed ₦155 billion in tuition and upkeep support to over 780,000 students, while about 1.3 million students have applied for the loan nationwide. It added that students from 262 tertiary institutions have benefited from the scheme so far.

While acknowledging that public policies may attract differing opinions, SAF advised against politicising initiatives that directly impact students and their families. The group encouraged constructive engagement and further clarification where necessary.

SAF also highlighted other education-sector reforms introduced by the Tinubu administration, including plans by the Federal Ministry of Education to expand Technical and Vocational Education and Training (TVET) nationwide. According to the group, TVET is designed to equip learners with practical skills in areas such as automotive technology, ICT, hospitality, and construction, with the goal of improving employability and entrepreneurship.

The Forum reaffirmed its support for NELFUND, TVET, and other education-focused reforms, expressing hope that stakeholders will continue to engage in balanced and informed discussions on policies affecting Nigeria’s education sector.