The Federal Government of Nigeria, on Monday, announced that application for its student loan scheme will begin on Friday, May 24, 2024.
Arbiterz reports that the Managing Director/Chief Executive Officer of the Nigeria Education Loan Fund, Akintunde Sawyerr, said 1.2 million students from federal government-owned tertiary institutions across the country would benefit from the first phase of the scheme.
In its 2024 budget, the President Bola Tinubu-led government allocated N50 billion to the student loan scheme and later raised it to N60 billion in a supplementary budget. This means that the 1.2 million students targeted in the first batch of the student loan scheme will only have access to a maximum amount of N60 billion in total.
N50,000 for a student, N1.9 million for a pilgrim
Suppose all 1.2 million students get the loan, on average, each student would only get N50,000 as a loan to finance their education in a country where the cost of education is on the rise.
With this meagre amount voted for education, the recent allocation of N90 billion in subsidies to 46,000 Hajj pilgrims has raised questions about the Nigerian government’s priorities when it comes to education. This leaves each pilgrim getting over N1.9 million, as against N50,000 for students. While the loan scheme for students is a welcome initiative, the disparity in funding raises concerns about the government’s commitment to education.
Education is the backbone of any nation, and Nigeria’s future prosperity depends on its ability to educate its citizens. However, the current allocation of resources suggests that the government is not prioritising education as it should. The N90 billion subsidy for Hajj pilgrims, although may be well-intentioned, raises questions about the government’s values and priorities.
It is, therefore, not surprising that well-meaning Nigerians have strongly criticised the N90 billion Hajj subsidy.
Hajj subsidy, setback for nation’s economy
The founder of Stanbic IBTC and ANAP Foundation, Atedo Peterside, described the N90 billion subsidy for the 2024 Hajj as a setback for the nation’s economy.
Peterside, who spoke recently in an interview on Channels TV’s Politics Today, said the move had a political undertone ahead of the next 2027 general election. He added that the gesture was not just about religion but was politically motivated.
“This is not about religion but about politics. We are mixing religion and politics.
“So, what do we now expect Christians to do? To say they want their own share of this subsidy?
“How are you going to refuse them? This is all about politics. Perhaps someone feels that ‘it is time for me to score some cheap political points,’” he said.
Peterside stressed that the move sent “the wrong signal about our economy at a time when our economy is in deep trouble. We need to bring ourselves out of the hole.”
“Each time you turn around and do something insignificant like this and throw away N90 billion, you set back the process by which investors and others can take you seriously.
“For me, it is not just about religion and pilgrimage. It is the setback of the economy by sending the wrong signals. The government should stop sending the wrong signals,” he added.
The loan scheme for students is a step in the right direction. It recognises the importance of education and the need to support students in pursuing their academic goals. However, the amount allocated is a drop in the ocean compared to the subsidy for Hajj pilgrims.
Skewed priorities
This disparity highlights the government’s skewed priorities and raises questions about its commitment to education.
Moreover, the loan scheme, as its name implies, is about loans repayable at a given time. In contrast, the subsidy for Hajj pilgrims is a direct benefit with no strings attached. While the government’s intention to support religious pilgrimages is understandable, it must not come at the expense of education. Education is a fundamental right and a critical investment in the nation’s future.
The Nigerian government must re-evaluate its priorities and recognise the importance of education. It must allocate resources accordingly, ensuring that education receives the funding it deserves. The future of Nigeria depends on its ability to educate its citizens, and the government must not compromise on this critical investment.
