STUDENTS LOANS (ACCESS TO HIGHER EDUCATION) ACT, 2023

EXPLANATORY MEMORANDUM

This Act provides easy access to higher education for Nigerians through students’ loan with a view
to providing education for all Nigerians.
 STUDENTS LOANS (ACCESS TO HIGHER EDUCATION) ACT, 2023

Arrangement of sections
Section:
1. Students loans and access to higher education
2. Equal right to access the loans
3. Purpose of the loans
4. Requirements for the loans
5. Establishment of the Nigerian Education Loan Fund
6. Functions of the Fund
7. Membership of the Special Committee
8. Tenure of office
9. Cessation from office
10. Power to alter or give directive
11. Allowances and expenses
12. Sources of the Fund
13. Aims and objectives of the Fund
14. Eligibility of applicants
15. Disqualifications
16. Method of application
17. Disbursement
18. Repayment
19. Application of the Public Officers Protection Act
20. Annual report
21. Repeal and savings provisions
22. Interpretation
23. Citation
 STUDENTS LOANS (ACCESS TO HIGHER EDUCATION) ACT, 2023

A Bill

For

An Act to repeal the Nigerian Education Bank Act Cap. N104, Laws of the Federation of Nigeria, 2004
and enact the Students Loans (Access to Higher Education) Act, 2023 to provide easy access to higher
education for indigent Nigerians through interest free loans from the Nigerian Education Loan Fund
established in this Act with a view to providing education for all Nigerians; and for related matters.
[ ] Commencement

ENACTED by the National Assembly of the Federal Republic of Nigeria —

1. Notwithstanding the provisions of any Act, enactment or Law, this Act shall apply to all Students loans and
matters pertaining to the application and grant of loans to Nigerians seeking higher access to higher
education
education into institutions of higher learning in Nigeria through the Nigerian Education
Loan Fund.
2. Subject to the provisions of any other enactment, all students seeking higher education in Equal right to access
any public institution of higher learning in Nigeria shall have equal right to access the loans the loans
under this Act without any discrimination arising from gender, religion, tribe, position or
disability of any kind.
3. The loans referred to in this Act shall be granted to students only for the payment of tuition Purpose of the loans
fees.

4. The grant of the loan to any student under this Act shall be subject to the students or Requirements for the
applicants satisfying the requirements and conditions set out under this Act. loans

5. (1) There is established the Nigerian Education Loan Fund (in this Act referred to as “the Establishment of the
Fund”) which shall have the functions and powers conferred on it by this Act. Nigerian Education
Loan Fund
(2) The Fund shall be domiciled with, managed and administered by the Central Bank of
Nigeria through the money deposit banks in Nigeria for the purpose set out under
section 6 of this Act
(3) The Governor of the Central Bank of Nigeria shall set up a Special Committee to perform
the functions of the Fund set out under section 6 of this Act.
(4) The Chairman of the Committee shall be the Governor of the Central Bank of Nigeria
who shall appoint the Secretary of the Committee.
(5) Subject to the provisions of this Act, the Committee shall establish regulations and
guidelines for the management, administration, disbursement and recoupment of
students’ loans under this Act, and all stakeholders including parents, students’
 applicants, beneficiaries of the students’ loans and deposit banks shall comply with the
regulations and guidelines.

6. The functions of the Fund are to — Functions of the Fund

(a) implement the provisions of this Act;

(b) supervise, coordinate, administer, and monitor the management of the
students loan in Nigeria;
(c) receive applications for students loans through higher institutions in Nigeria
on behalf of the applicants, screen the applications to ensure that all
requirements for grant of students’ loans under this Act are satisfied in
compliance with the provisions of this Act;
(d) approve and disburse loans to qualified applicants;
(e) control and monitor and coordinate the students loans account or Fund
domicile with the Central Bank of Nigeria and ensure compliance in respect
of disbursement;
(f) monitor academic records of grantees of the loans to obtain information on
their year of graduation, national service, employment and to ensure that
grantees of the loans commence repayment of the loans as at when due;
(g) liaise with the employers of the grantees and conclude documentation with
employers to ensure that the required sum to be deducted is deducted from
the grantees salary and remitted to the Fund or account as directed by the
Committee;
(h) provide financial advice on educational matters to institutions of higher
education, and to parents and educational investors;
(i) ensure adequate security on any loan granted;
(j) engage and participate in other banking business;
(k) exercise all legal rights toward recovering all loan and enforcing the
provisions of this Act;
(l) quarterly issue a report to the President on the performance of the students
loans;
(m) without prejudice to the provisions of this Act or any other enactment
provide rules and guidelines including method of application to ensure
better performance at all times and prevent the emergence of ghost students
applications;
 (n) employ and pay the staff of the Fund salaries and other benefits using the
scale as applicable to industry of similar status;
(o) enter into any negotiation, agreement and contractual relationship such as
may be necessary or expedient for the performance of the functions of the
Commission;
(p) conduct studies, researches, and investigations that may further the
attainment of the goal and development of the students loans regime in
Nigeria; and
(q) do anything necessary to be done to facilitate the performance of its
functions.

7. (1) There shall be for the Fund a Special Committee (in this Act referred to as “the Membership of the
Committee”) which shall be responsible for the performance of the functions of the Special Committee
Fund.
(2) The Committee shall consist of —
(a) the Governor of the Central Bank of Nigeria as the Chairman;
(b) the Secretary of the Fund who shall be appointed by the Chairman;
(c) the Minister responsible for education;
(d) the Chairman, National Universities Commission;
(e) a representative of Vice-Chancellors forum of all Nigeria Universities;
(f) a representative of the Rectors forums of all Nigerian Polytechnics and Provosts
forum of all Colleges of Education in Nigeria;
(g) the Minister responsible for finance or his representative;
(h) the Auditor-General for the Federation;
(i) a representative of the Nigerian Labour Congress;
(j) a representative of the Nigerian Bar Association; and
(k) a representative of the Academic Staff Union of Universities.

8. Subject to the provisions of section 7 of this Act, the Chairman and members of the Board Tenure of office
shall hold office for the term for which they hold their substantive offices and shall
automatically be replaced by his successor:
Provided that the appointment of the Secretary shall be at the pleasure of the Chairman of
the Fund.
9. (1) A person shall cease to hold office as a member of the Committee if he — Cessation of office

(a) dies;
(b) becomes bankrupt;
(c) is convicted of a felony or any offence involving dishonesty or fraud;
(d) becomes of unsound mind or is incapable for any reason of discharging his duties;
(e) is guilty of serious misconduct in relations to his duties; or
(f) resigns his appointment by written notice under his hand to the president.
(2) Where there is a vacancy in the membership of the Committee as a result of any of the
causes mentioned in subsection (1), it shall be filled by the person next in rank to the
affected member pending the appointment of a substantive successor to his office.

10. The President shall have power to alter the decision of the Committee or give such Power to alter or give
directive to the Committee as he deems fit if he is satisfied that it is in the interest of the directive
Committee or the public.

11. A member of the Committee shall be paid such allowances and expenses as may be Allowances and
expenses
determined by the Governor of the Central Bank of Nigeria.

12. The sources of the Fund shall consist of — Sources of the Fund

(a) education bonds;

(b) education endowment fund schemes;
(c) 1% of all taxes, levels and duties accruing to the Government of the
Federation from Federal Inland Revenue Service (FIRS), Nigerian
Immigration Service and Nigerian Customs Service;
(d) 1% of all profits accruing to the Government of the Federation arising from
oil and other minerals;
(e) all sums accruing to the Fund by way of donations, gifts, grant, endowment
or otherwise; and
(f) other revenue accruing to the Fund from any other source.

13. The aims and objectives of the Fund shall be to — Aims and objectives of
the Fund
(a) facilitate the mobilisation of funds to provide interest free loans to students of
institutions of higher learning in Nigeria for the payment of tuition fees; and
(b) ensure constant supply of loans to qualified students applicants for the purpose of
providing education to all Nigerians.
14. Students applying for loan under this Act must apply as provided under section 17 of this Eligibility of applicants
Act on satisfaction of the following conditions —
(a) applicant must have secured admission into any of the Nigerian universities,
polytechnics, colleges of education or any vocational school established by
the Federal Government or the Government of any state of the federation.
(b) applicant income or family income must be less than N500,000 per anum;
(c) applicant must provide at least two guarantors, and each of the guarantors
shall be a —
(i) civil servant of at least level 12 in the service,
(ii) lawyer with at least 10 years post-call experience,
(iii) judicial officer, or
(iv) justice of peace.

15. A student is disqualified from accessing the loan if — Disqualifications

(a) he is proven to have defaulted in respect of any previous loan granted by

any organisation;
(b) he has be found guilty of exam malpractice by any school authority;
(c) he is convicted of a felony or any offence involving dishonesty or fraud;
(c) he has been convicted of drug offenses; or
(e) any of the parents has defaulted in respect of students loan or any loan
granted to the person

16. (1) All applications must be submitted through the applicant’s bank to the Chairman of the Method of application
Committee established under this Act accompanied by a cover letter signed by the vice-
chancellor or rector or the head of the institution and the students affairs officer of the
institution.
(2) Each application shall be accompanied by —
(a) copy of the student’s admission letter;
(b) a letter by the guarantors addressed to the Chairman of the Committee
established under this Act recommending the student for the loan and
stating that he accepts liability in the event of default;
 (c) two passport photographs from each of the guarantor’s, name of employer
and evidence of being so employed by the named organisation;
(d) particulars of guarantor’s business registration with the Corporate Affairs
Commission or any other appropriate authority and his bankers, where the
guarantor is self-employed.
(3) The Committee shall communicate to the applicant on the status of his application
within 14 days of the receipt of any application
(4) Disbursement shall be on availability of funds.

17. Processing of any applicant’s application and disbursement shall be made within 30 days Disbursement
of the application reaching the Chairman of the Committee subject to section 18 (4) of
this Act.
18. (1) Any beneficiary of the loan to which this Act refers shall commence repayment two Repayment
years after completion of the National Youth Service Corps programme.
(2) Repayment shall be by direct deduction of 10% of the beneficiaries salary at source by
the employer and credited to the Fund
(3) Any change of job shall be communicated to the Chairman of the Committee within 30
day of resuming with his new employer with details of the new job
(4) Where the beneficiary is self-employed, he shall remit 10% of his total profit monthly
to the Fund
(5) For the purpose of subsection (4), a self-employed person shall within 60 days of
assuming that status submit all information such as name of business, address and
location, registration documents, if registered, name of bankers, names of partners,
name of directors and shareholders to the Committee
(6) Any one in default of the provisions of subsection (5), or found to be aiding the default
of subsection (5), commits an offence and is liable on conviction to a fine of N500,000
or imprisonment for a term of two years or both.

20. (1) The provisions of the Public Officer Protection Act shall apply in relation to any suit Application of the
instituted against any officer of the Committee established under this Act. Public Officers
Protection Act
(2) A suit shall not be commenced against a member of the Committee or the Secretary
before the expiration of a period of one month after writing a notice of intention to
commence the suit which shall have been served on the Committee by the intending Cap. P41, LFN, 2004
plaintiff or his agent.
 (3) The notice referred to in subsection (2) shall state, the cause of action, particulars of
claims the name and place of abode of the intending plaintiff and the relief, which he
claims.
(4) A notice, summons, or other documents required or authorised to be served on the
Committee under the provisions of this Act or any other law or enactment may be
served by delivering it to the Secretary or by sending it by registered post and addressed
to the Secretary at the head office of the Central Bank of Nigeria.

21. The Committee shall, not later than four months after the end of year, submit to the Annual report
President a report on the activities of the Fund and its administration during the immediate
preceding year and shall include in the report the audited accounts of the Fund and the
auditor’s comment on the report.

22. (1) The Nigerian Education Bank Cap. N104 Laws of the Federation of Nigeria, 2004 is Repeal and savings
provisions
repealed.
(2) All assets, funds, resources and other moveable or immovable properties which
immediately before the commencement of this Act were vested in the repealed Act
shall by virtue of this Act be vested in the Fund established under this Act.

23. In this Act — Interpretation

“Committee” means the Special Committee established under this Act to manage and
administer the Fund
“Fund” means the Students Education Loans Fund established under this Act;
“loan” means loan to be granted to qualified students of institutions of higher learning
in Nigeria; and
“institutions of higher learning” means public universities, polytechnics, colleges of
education and vocational schools established by government.

10. This Act may be cited as the Students Loans (Access to Higher Education) Act, 2023. Citation