Would you like to receive notifications on latest updates of the following headlines?

Student Loan: FG seeks 30% TETfund allocation

POSTED ON September 26, 2024 •   EDUCATION      BY Benedicta Bassey
President Bola Ahmed Tinubu

The Federal Executive Council on Thursday proposed a bill, seeking for  30 per cent of allocations received by the Tertiary Education Trust Fund go to the Student Loan Scheme.

The bill, however, seeks to amend Section 3 of the Tertiary Education Trust Fund Act No. 16, 2011, labelled ‘Establishment of the Tertiary Education Trust Fund.’

The Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, revealed this during a press briefing at the Aso Rock Villa, Abuja.

The Bill if endorsed by the National Assembly, TETFund will set aside 30 per cent of its initial allocation from the Federation Account to support the Nigerian Education Loan Fund.

The statement reads, “The Fund shall, before disbursement of the amount in the Fund, set aside in each year (a) one-third of the amount to be transferred to the Nigerian Education Loan Fund established under the Students Loans (Access to Higher Education) Act.

“An amount not exceeding five per cent of the total monies accruing to the Fund in the preceding year, which shall be applied for – (i) the cost of administration and management of the Fund, necessary for the due administration and implementation of the purpose of this Act, (ii) the maintenance of any property acquired by or vested in the Fund and generally to pay for services rendered to the Fund, and (iv) any other expenditure as may be approved by the Fund, from time to time, in connection with all or any of its functions and powers under this Act.”

Onanuga explained that the proposed legislation would serve as a sustainable resource stream for student loans.

“Some of us may have wondered how we are going to fund the loans we are giving to Nigerian students. Most of the funding will now come from the money going to TETFund.

“So there’s an amendment to the TETFund Act that was made in 2011 that now says that the fund shall, before disbursement of the amount in the fund, set aside an initial one-third of the amount to be transferred to the Nigerian Education Loan Fund. That is, 30 per cent of whatever TETFund gets from the federation account will now be passed on to NELFund, which will provide a ready funding source to NELFund.

“Also, TETFund has been pegged to spending only five per cent of its income on its administration. That is, whether it wants to do capital projects in its office or wants to pay salaries, it cannot spend more than five per cent of whatever accrues to it from the Federation Account. That’s the maximum it can get according to the fund. So, 30 per cent of TETFund is now going to fund the NELFund, and five per cent to fund its own operations,” Onanuga explained.

He added that the new allocation was only “supplementary as there will also be budgetary allocation from the Federal Government to NELFund all the time.”

READ ALSO
Historic Leap for Education: Federal Polytechnic Ilaro Elevated to University Status
BY Abiodun Saheed Omodara August 3, 2025 0

The Olu of Ilaro and the paramount ruler of Yewaland, Oba Kehinde Olugbenle, has praised President B...

READ ALSO
FG Pledges to End Tertiary Education Strikes, Launches Diaspora Bridge Initiative
BY Abiodun Saheed Omodara July 31, 2025 0

The Minister of Education, Dr. Tunji Alausa, stated that the Federal Government, led by President Bo...

READ ALSO
NYSC Urges Employers to Implement Attendance Registers for Corps Members
BY Abiodun Saheed Omodara July 24, 2025 0

The National Youth Service Corps (NYSC), on Thursday, urged employers of corps members to establish...

READ ALSO
Tinubu Renamed University of Maiduguri in Honor of Late President Muhammadu Buhari
BY Abiodun Saheed Omodara July 17, 2025 0

President Bola Tinubu has approved the renaming of the University of Maiduguri in Borno State to Muh...

READ ALSO
Governor Yusuf Urges Community Support for Educational Initiatives
BY Abiodun Saheed Omodara July 12, 2025 0

The Chief of the Naval Staff (CNS), Vice Adm. Emmanuel Ogalla, has reiterated the Nigerian Navy&rsqu...

READ ALSO
JAMB Reports Surge in Exam Malpractices, Two Arrested in Katsina
BY Abiodun Saheed Omodara July 9, 2025 0

Data released by the Joint Admissions and Matriculation Board at its 2025 policy meeting on Tuesday...

READ ALSO
JAMB Sets 2024 Cut-Off Marks for Tertiary Institutions
BY Abiodun Saheed Omodara July 8, 2025 0

The Joint Admissions Matriculation Board announced the admission cut-off marks for universities, pol...

READ ALSO
Nigeria Faces Teacher Shortage: Over 31 Million Learners Rely on Just 915,913 Educators
BY Abiodun Saheed Omodara July 8, 2025 0

According to data from the Universal Basic Education, only 915,913 teachers are available for at lea...

OUR CHANNELS:

Northern Ex-Lawmakers Divided Over Tinubu's 2027 Re-Election Bid
BY Abiodun Saheed Omodara August 3, 2025 0

Former federal lawmakers from northern Nigeria are sharply divided over President Bola Tinubu’...


SERAP Raises Alarm Over Public Officials' Lack of Accountability
BY Abiodun Saheed Omodara August 3, 2025 0

The Socio-Economic Rights and Accountability Project (SERAP) expressed its concerns on Saturday rega...


Tinubu Calls for Enhanced Regional Integration to Boost West Africa's Economic Competitiveness
BY Abiodun Saheed Omodara August 4, 2025 0

President Bola Tinubu has highlighted the crucial need for enhanced regional integration throughout...


Amnesty International Condemns Closure of Badeggi 90.1 FM as Threat to Press Freedom
BY Abiodun Saheed Omodara August 3, 2025 0

Amnesty International has condemned the shutdown of Badeggi 90.1 FM in Minna, calling the move by Ni...


165 Lives Lost and 119,791 Affected by flood Across 19 States - NEMA
BY Abiodun Saheed Omodara August 4, 2025 0

The National Emergency Management Agency (NEMA) reported that at least 165 people have died, 82 are...


Tottenham Hotspur Faces Captaincy Void as Son Heung-min Announces Exit
BY Abiodun Saheed Omodara August 3, 2025 0

Tottenham Hotspur, the reigning champions of the UEFA Europa League, will be missing their South Kor...


Team Nigeria Shines at Inaugural African School Games as Osaretin Grace Clinches Gold in Cycling
BY Abiodun Saheed Omodara August 4, 2025 0

Team Nigeria continues to assert its dominance on the continental stage, delivering a sterling perfo...


Tinubu Calls on Youth to Harness Digital Media for National Unity and Economic Growth
BY Abiodun Saheed Omodara August 4, 2025 0

President Bola Ahmed Tinubu has urged young Nigerians in the digital media sector to utilize their p...


Nigeria Immigration Service Urges Compliance with U.S. Visa Regulations
BY Abiodun Saheed Omodara August 3, 2025 0

The Nigeria Immigration Service has issued a notice urging Nigerians to utilize their U.S. visas app...


Security Guard Confesses to Gruesome Murders of School Nurse and Toddler
BY Abiodun Saheed Omodara August 3, 2025 0

A man named David Moses has admitted to the horrific murders of a school nurse and a 14-month-old ch...


More Articles

Load more...

Menu