The Federal Inland Revenue Service (FIRS) of Nigeria has disclosed that the Education Tax will be one of the funding sources for the recently established Student Loan Scheme.
FIRS Chairman, Dr Zacch Adedeji, mentioned that the education tax fund would contribute to the financing of the scheme, ensuring accessibility to education for all. The Student Loan Scheme is set to be fully automated, eliminating human involvement in the application and processing of loans.
Speaking to State House Correspondents after briefing President Bola Tinubu, Adedeji emphasized the government’s commitment to being accountable to Nigerian taxpayers.
The education tax collected by FIRS will be utilized to execute the program, aligning with the administration’s promise to make education accessible to all.
The Executive Secretary of the Student Loan Board, Dr Akintunde Sawyerr, highlighted that the scheme’s automation would ensure a streamlined and efficient process, with zero human involvement in the application and approval of loans.
Prospective applicants will use the loan app or website to submit their requests, providing necessary details such as JAMB registration number, Date of Birth, National Identification Number, and Biometric Verification Number.
Sawyerr outlined the application process, underscoring the importance of information like the National Identification Number (NIN) for verifying applicants as Nigerians and the Bank Verification Number (BVN) for financial inclusion.
The loan scheme aims to empower students, and direct transfers of approved funds will be made to the respective institutions.
The Executive Secretary likened the loan to a bridge connecting the aspiration for further education with the necessary funds, ensuring that financial constraints do not hinder young Nigerians from pursuing tertiary education. The scheme offers opportunities for career choices, including teacher training programs and vocational skills.
The Student Loan Scheme, signed into law by President Bola Tinubu on June 12, 2023, aligns with the government’s commitment to liberalize education funding and address challenges such as strikes in the education sector.
The law enables indigent students to access interest-free loans, promoting accessibility and inclusivity in higher education. The scheme is set to launch in January 2024, marking a significant step toward enhancing educational opportunities for Nigerian youths.