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The Student Loan (Access to Higher Education)
(Repeal and Re-enactment Act 2024
The Students Loan (Access to Higher Education) (Repeal and Re-enactment) Act of 2024 in Nigeria is a significant piece of legislation aimed at expanding access to higher education. The Act establishes the Nigerian Education Loan Fund (NELFUND) which will provide loans to Nigerian students for tuition, fees, and upkeep during their studies in approved tertiary academic institutions and vocational and skills acquisition institutions. The Act amended the Student Loan Act 2023 and makes the NELFUND a body corporate that can sue and be sued, it also outlines the repayment terms, governance structure of the fund, establishment of general reserve fund and the duty of employers to enquire on the loan status of employees.
The Value Proposition
Increased access to education: The Act is expected to increase the number of Nigerians with access to higher education, particularly those from disadvantaged backgrounds.
Human capital development: By providing financial support for education, the Act can contribute to the development of a skilled workforce, which is crucial for economic growth.
Debt burden: The Act provides that the Fund shall not initiate loan recovery efforts until two years after the completion of the National Youth Service Programme. It gives allowance for extension.
Economic impact: A more educated population can lead to increased productivity, innovation, and economic growth.
Expected Outcomes
Human resources: Businesses may benefit from a more educated and skilled workforce. There may be opportunities to recruit graduates with relevant skills.
Financial services: Financial institutions may be involved in loan disbursement and management.
Education sector: Private educational institutions may experience increased competition or collaboration with the government.
Taxation: The Act introduces new tax-based funding sources, which could impact businesses' tax obligations.
Default management: Businesses may be involved in debt recovery efforts or providing employment opportunities to loan beneficiaries as a condition for repayment.
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