The Nigerian Senate has passed for second reading the Students Loans Access to Higher Education Act (Repeal and Enactment) Bill, 2024. 

This legislative move comes in response to a correspondence from President Bola Tinubu, who urged the Senate to repeal the existing law and enact a new bill.

The decision to pass the bill for second reading follows the recent announcement of a temporary suspension of the commencement of the student loan scheme. This scheme was designed to provide interest-free loans to students of tertiary institutions, enabling them to complete their studies.

During the plenary session, Senator Sani Musa proposed the allocation of a percentage from bank charges to the student loan fund as a means of ensuring its sustainability. This suggestion was made in light of ongoing discussions surrounding the funding sources and disbursement mechanisms of the student loan scheme.

The passage of the bill was preceded by a debate among several lawmakers, who commended the executive bill for its comprehensive approach to addressing challenges related to the management structure of the Nigerian Education Loan Fund (NELF), applicants’ eligibility requirements, loan purpose, and funding sources.