Professor Edoba Omoregie (SAN), on Monday, ranked the Nigerian Education Loan Fund (NELFUND) above its counterparts in the United States and United Kingdom.
The Vice Chancellor of the University of Benin, recently declared stating that NELFUND is the finest development the country's education sector has ever seen. He also added that it outperforms the schemes operated in the United States of America and the United Kingdom.
Speaking to Vanguard, Omoregie nonetheless admitted that he is underwhelmed by how keen people have been so far to tap into the fund.
NELFUND in a Class of Its Own
In his view, NELFUND stands apart in all respects. These include how one applies for it, the grace period granted before repayments begin, and the share of income taken once repayment starts. He said this made it nearly equivalent to an education grant.
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He applauded President Bola Tinubu for acting swiftly on the matter. Tinubu assented to the first bill, which had been passed during the Muhammadu Buhari administration. He then promptly repealed it and sent in the current version as a proposal from the presidency. Omoregie said this version is friendly to both students and sponsors.
He spoke warmly of the student loan scheme, calling NELFUND a godsend. In his view, few public policy measures since independence have mattered as much. He praised President Ahmed Tinubu for the initiative, noting that Tinubu put his signature to the NELFUND bill. An earlier draft had been prepared under President Buhari, but it never became law. Tinubu enacted that first bill, then, on spotting operational flaws, chose to repeal it and return to parliament for a fresh act in early 2024.
Professor Omoregie described himself as a member of the technical team that went over the first version of the scheme. He said it had been cut back heavily to calm some of the previous president's anxieties. As a result, its central purpose was nearly watered down entirely. "The earlier draft dwelt on borrowers having to provide security before they could access the facility. It also put a ceiling on how much could be drawn, and there was no provision for upkeep or any of those things. In his judgement, President Tinubu found it inadequate and asked for a fresh draft".
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“I am certain that foreigners too will soon come to study it. Unlike a good number of the loans for students you have in America, the UK and elsewhere, which leave people wary, this one carries no interest. Perhaps a different word should even replace ‘loan’. It resembles a grant more closely. There is a grace period, so nobody will trouble you until you begin employment. Once you are employed, nobody will demand repayment in bulk; they would simply take off a tiny share of your pay. All of it will be arranged so that you do not suffer burnout.”
