Ahead of the takeoff of the student loan scheme recently signed into law by Nigeria’s President, Bola Tinubu, Managing Director of UpdateAfrika Communications, Dr Joseph Effiong, has called for an improved repayment schedule in such a way that enables a win-win situation for both the borrower and lender.
Effiong disclosed this in a recent statement made available to DAILY POST.
He advocated for an income-based repayment plan that is not tied to a fixed amount, to be spread over an extended period.
This is as the Federal Government’s amended Act on the loan pegged repayment to two years post National Youth Service (NYSC) and a 10 per cent direct deduction from beneficiaries’ salaries.
Effiong was speaking amid concerns about the economic effects of the government’s decision on repayment modalities, which he too submitted may be counterproductive to the economy in the long run.
He feared that with the height of unemployment data, reportedly increasing every month, the government’s modalities may be unrealistic, hence, the need for prompt adjustment.
Moreover, he stressed the urgency to address the root causes of unemployment among youths to avoid running into bankruptcy with the scheme, advising the present administration to learn from the USA which is presently battling a debt crisis as a result.
“Both government and educational institutions alike need to focus on enhancing job-relevant skills, internships, and career guidance to better prepare graduates for the job market.
“Additionally, the authority needs to explore partnerships with private firms to help facilitate finance for graduates seeking entrepreneurship routes. More so, there is a need to drive policies that will enable mass jobs in both private and public sectors”, he admonished.
He maintained that the government will need to closely and routinely monitor the scheme’s performance with its manager for accountability and adjustment if need be.
Recall that NELFUND on May 24 2024 launched the portal for registration of the batch of student loan beneficiaries.
The government said that 1.2 million federal higher students will benefit from the first phase of the Student Loan scheme.
NELFUND on Tuesday shifted the June 25, 2024 commencement of the loan second phase of the scheme which will include students from state universities.
Student Loan: Modify repayment plan – Effiong to Nigerian Govt
