Nigerian Government to finance Student Loan Scheme with Education Tax- FIRS Chairman

According to the Federal Inland Revenue Service (FIRS), the Nigerian government has said that the Student Loan Scheme will be financed by the Education Tax Fund.

Read Also: Lack of responsibility is cited by the minister as a problem with tax payments

At the Presidential Villa in Abuja on Monday, FIRS Chairman Zacch Adedeji and Executive Secretary of the Board Dr. Akintunde Sawyerr briefed State House Correspondents on this.

Adedeji claims that the implementation of the Education Tax Fund in the plan is one method the national government can answer to the people who pay taxes.

In his remarks, Sawyerr also stated that the procedure for applying for the loan would be devoid of human interaction as every activity would be conducted on an App specifically built for the purpose.

He clarified that the government was anxious to make sure that young Nigerians did not miss out on a university degree due to a lack of funding for their studies.

He claimed that the introduction of the student loan programme will free up Nigerians to choose the career path they want, instead of forcing them to do something different because they couldn’t afford the necessary schooling.

Sawyer further said that the financing would contribute to halting the perilous treks made by young Nigerians over the Sahel to Europe in pursuit of a better life.

In addition, he revealed that the winning applicants’ tuition fees would be paid straight to their respective schools, and that although all Nigerians were eligible to apply for the loan, only the most indigent would receive funding.

“We are excited to inform you about the upcoming launch of the Nigerian Education Loan Fund, which is the cornerstone that will operationalize the student loan scheme in Nigeria,” stated Sawyerr. This is a fantastic chance to contribute to the resolution of a long-standing issue that has been plaguing our beloved country for a while.

There are a plenty of people that are highly capable and have a strong desire to further their knowledge. And in most cases, that breaks down as they reach the tertiary base. They actually have a lot of options at that point: either find a way to pay for that tertiary space, or enter the workforce with credentials that aren’t always ideal for them.

A portion of what I refer to as tertiary is academic. University education is therefore typically thought of as academic. However, this programme aims to give Nigerian students the chance to pursue academic paths and earn a degree, or they may choose to pursue technical paths and earn credentials and vocational skills that are always in demand in both society and the field of teacher preparation. Because, as you may know, none of us would get very far without teachers. Both teachers and other people’s lessons are essential to our education.

In light of the fact that the applicant is at the centre of everything, this is a fantastic chance for them. The purpose of this act is essentially to make sure that lack of funding is not the reason you are unable to continue your education at a higher level.

This law aims to close the gap between a person’s desire to learn and their ability to advance. It aims to close the gap caused by a lack of financing and resources.

“I want to tell you that this has been done with a lot of thought,” he continued. Thus, there is no human involvement involved in the application process or in applying for this loan. Stated differently, there is an app. The candidate will access a portal and interact with the application.

“They will need to enter specific details that enabled them to apply, such as their JAMB number and, naturally, the connection to their birthdate. Additional details include their national identity number (NIN), which attests to their Nigerian citizenship.

Nigerian taxpayers are funding this lending programme. Therefore, the NIN assists in validating and qualifying them as Nigerians.

Their BVN is required for financial inclusion because this programme will eventually enable students to take charge of their education. Thus, we must be aware that they possess bank accounts. To gain access to their accounts, we must locate their accounts.

In order for us to definitively determine which institution they are attending, it will also contain their matriculation and admission numbers. This is because, once applications are received and accepted, the fees or tuition requirements in terms of finances will be paid directly to the institution.

“That enriches the institution in and of itself. Not only do several students struggle to pay their fees, but their parents often face financial difficulties. The dropout rate is extremely high. Thus, being accepted into a postsecondary institution is one thing. Remaining there for three or four years is a another matter. With this programme, people can apply and stay until they meet the requirements or graduate.

“This is in fulfilment of Mr. President’s promise that we will make education accessible to all,” Adedeji continued, providing more explanation. And the reason I have to put in my own is because of the financing source. One of the programmes we will use to apply the education tax that we will be collecting is this one. Since the main goal of the education tax is to restore and consolidate the integrity and quality of education, this is a means of being accountable to the taxpayer.

“And in carrying out that portion of the Act, which is why, with God’s grace, the Education Tax Fund is one of the funding sources that we’ll actually use to execute this commendable programme.”