Sunday, August 16, 2026

Tinubu signs student loan into law with imprisonment, N500,000 fines for defaulters

Mr Alake said that a percentage of the revenue of the federation would be used to finance the new initiative.

and • June 12, 2023
President Bola Tinubu signing Students Loan Bill into law
President Bola Tinubu signing Students Loan Bill into law [Photo: Twitter/OfficialABAT]

President Bola Tinubu has signed the Students Loan Bill into law, which was part of his campaign promises.

The law would allow indigent students in tertiary institutions to access a federal government loan for the duration of their studies.

Dele Alake, an aide to Mr Tinubu, disclosed this on Monday at the end of the signing at the Presidential Villa, Abuja.

Mr Alake said the bill would boost the educational pursuit of the youths across the country, adding that to enjoy the facility,  students must show evidence of being indigent.

He said that a committee drawn from all the relevant education stakeholders would be set up to handle the process of an efficient disbursement of the loans.

Mr Alake said that a percentage of the revenue of the federation would be used to finance the new initiative.

The law stipulates a two-year imprisonment or N500,000 fine for defaulters and conspirators. 

Andrew Adejo, the permanent secretary in the ministry of education, said  the bill would rest the case of funds of hindering indigents educational pursuit.

He said the signing of the bill signified how the Tinubu administration intended to handle the issue of qualitative and quantitative education in its period.

Mr Adejo said the ministry already had experience in students’ financial dealings through the student scholarship boards scheme.

He added that the country’s handling of loan recovery in various projects would also come in handy in the recouping of loans.

He added that the interest-free loan would be disbursed based on the students number of years of study and ability to pay back.

The permanent secretary said the media should assist in disseminating information on the issue of funding of education in the country.

He said the states should march the financial and technical support of the federal government in order to give Nigerians a good education.

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