Students Loan Scheme Unsustainable, NEFGAD Tells Tinubu, NASS

The Network for Social Growth and Actualization of Viable Development (NEFGAD) has criticized the Students Loan Scheme of the President Bola Tinubu Administration describing it as unsustainable and injurious to the country’s development.

A statement signed by the group’s head of office, Mr Akingunola Omoniyi and made available to newsmen in Abuja on Friday maintained that the series of postponements and uncertainties around the launch of the scheme shows that the idea is weak.

Akingunola noted that the Scheme was looking more like a mere campaign slogan that should have ended with the 2023 general elections.

He added that the bill is anti-development and psychologically harmful to the Nigerian youth.

Akingunola further stressed that the policy lacks adequate support system necessary for efficient operations, and will end up killing the morale, drive and esteem of Nigerian youth in the long run.

“Since hope of gainful employment remains the only collateral for the loan, government should first address the challenges of unemployment/underemployment and be certain that loan takers have high assurance of gainful employment after graduating from school before committing them to employment-tied loan repayment plan, unless the government intend to breed high population of insolvent citizens.

‘’A country with over 40 percent unemployment rate and more under-employed should expect over 50 percent students loan defaulters rate, hence putting over 50 percent of a country’s supposed productive youth population automatically under perpetual burden and stigma of insolvency is retrogressive and detrimental to the aspirations of a developing nation.

“Unlike Nigeria, in countries where such policies work, governments of those countries have proper employment and retirement plans for their citizens right from their day of birth.

“The Students Loan Scheme if allowed to stand will further worsen the situations of Nigerian youths and render them more distressed by combining the trauma of joblessness with the burden of insolvency,” he said.

Akingunola urged the President and the National Assembly to ensure that robust and sustainable job creation strategies and frameworks are in place before considering such a delicate proposal as a loan for students.

He however canvassed for the conversion of the Loan to grants for deserving indigent students rather than creating an entirely new agency/Board for the Fund at a time that the country is considering the implementation of the Steve Oronsanye report in order to reduce the over bloated size of government.

Akingunola added that the existing law establishing the National Scholarship Board can be strengthened to administer the fund.