NEFGAD: Students Loan Unsustainable, Harmful to Nigerian Youth

Michael Olugbode in Abuja

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

The group in a statement signed by its head of office, Mr Akingunola Omoniyi and made available to newsmen in Abuja at the weekend maintained that the series of postponements and uncertainties around the launch of the scheme showed that the idea was weak and looking more like a mere campaign slogan that should have ended with the 2023 general elections.

Akingunola said the bill was anti-development and psychologically harmful to Nigetian youth, while further stating that the policy lacks adequate support system necessary for efficient operations, and will end up killing the morale, drive and esteem of Nigerian youth at the long run.

He noted that since the 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 commiting them to employment-tied loan repayment plan, unless the government intend to breed high population of insolvent citizens.

He said that: “A country with over 40% unemployment rate and more under-employed should expect over 50% students loan defaulters rate, hence putting over 50% 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.

He decried that the Students Loan Scheme if allowed to stand will further worsen the situations of nigerian youth and render them more distressed by combining the trauma of joblessness with the burden of insolvency.

Akingunola admonished President Tinubu and the National Assembly that if at all the bill must succeed they should ensure that a robust and sustainable job creation strategies and frameworks are in place before considering such a delicate proposal.

He however canvassed for the conversation of the Loan to grants for deserving indigent students instead and 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 overbloated size of government, the extant law establishing the National Scholarship Board can be strengthened to administer the fund, he advised.