The development of skill acquisition programs in Nigeria is set to receive significant financial support through sponsorship from the Student Loan Scheme. With this initiative, more Nigerians will now have access to training and vocational skills even if they do not currently have the funds to finance their education. The funding will be provided by the Federal Government through the Nigeria Education Loan Fund (NELFUND), and repayment will be made in part after the completion of the training.

Presidential Directive Expanding the Student Loan Scheme

The Student Loan Scheme, originally designed to cater to students in tertiary institutions, has now been expanded to include individuals interested in skill development programs. This expansion follows a directive issued by President Bola Ahmed Tinubu to the Nigeria Education Loan Fund (NELFUND), emphasizing the importance of vocational training alongside conventional academic qualifications.

President Tinubu issued the directive in Abuja last week after being briefed by the Executive Secretary of NELFUND, Dr. Akintunde Sawyerr. The President stressed the need to ensure that Nigerians who do not wish to pursue university degrees can still benefit from skill acquisition programs. Dr. Sawyerr noted that skills training is just as essential as obtaining undergraduate and postgraduate qualifications, particularly in an era where technical expertise and entrepreneurship play a crucial role in national development.

Overview of the Nigeria Education Loan Fund (NELFUND)

The Nigeria Education Loan Fund (NELFUND) is an integral part of President Tinubu’s vision for accessible education and skill development, as outlined in the Access to Higher Education Act, 2023. This Act, widely referred to as the Student Loan Law, aims to provide loans primarily for underprivileged Nigerian students to cover tuition fees at any accredited tertiary institution in the country.

However, with the new expansion, the loan scheme will now cover a wider demographic, ensuring that even those who choose vocational or technical training have access to financial assistance. The fund will cater to individuals who want to develop marketable skills in areas such as information technology, construction, agriculture, healthcare, fashion, and other industries critical to economic growth.

Sources of Funding for NELFUND

To ensure the sustainability of the program, NELFUND will receive funding from multiple sources, including:

• One percent of all profits accruing to the federal government from oil and other mineral resources.
• One percent of taxes, levies, and duties collected by the Federal Inland Revenue Service (FIRS), Nigeria Immigration Service (NIS), and Nigerian Customs Service (NCS).
• Education bonds and education endowment funds, which will provide additional financial backing to the scheme.
• Donations, gifts, grants, and endowments from private and international donors, contributing to the long-term sustainability of the fund.
• Revenue generated from other sources, as stipulated by the Access to Higher Education Act, 2023.

These funding sources aim to provide continuous financial support, ensuring that skill acquisition programs and university education remain accessible and affordable for Nigerians from all socio-economic backgrounds.

Benefits of the Student Loan Scheme for Skill Acquisition

1. Increased Access to Skills Training

With the expansion of the loan scheme, many Nigerians who could not previously afford vocational training will now have the opportunity to enroll in skill acquisition programs. This will help bridge the gap in unemployment by equipping individuals with practical and income-generating skills.

2. Encouraging Entrepreneurship and Job Creation

Skill acquisition programs play a crucial role in entrepreneurship development. By providing financial assistance, the Student Loan Scheme will help young entrepreneurs and artisans start their own businesses, leading to job creation and economic growth.

3. Reducing the Dependence on White-Collar Jobs

Many Nigerian graduates struggle to secure employment in the formal sector due to limited job opportunities. By supporting skill acquisition, the loan scheme will encourage more people to explore careers in handicrafts, ICT, agriculture, and other technical fields, reducing reliance on white-collar jobs.

4. Bridging the Skills Gap in Nigeria

There is a growing demand for skilled professionals in various industries, including automotive repair, electrical work, plumbing, and digital marketing. This initiative will equip more Nigerians with the expertise needed to meet market demands, strengthening local industries and businesses.

How to Apply for the Student Loan for Skill Acquisition

The Nigeria Education Loan Fund (NELFUND) will soon roll out the application process for interested individuals. However, Dr. Akintunde Sawyerr has emphasized that the process will be technology-driven, reducing human interaction and eliminating the possibility of mismanagement. This ensures transparency, accountability, and efficiency in fund disbursement.

The loan application process will involve the following steps:

1. Online Application Portal

A dedicated registration portal will be launched, where applicants can submit their personal details, training program of interest, and supporting documents.

2. Eligibility Verification

Applicants will need to meet certain criteria before receiving financial assistance. These may include:

• Proof of Nigerian citizenship.
• Admission into a recognized vocational or technical training program.
• Submission of academic records or other relevant credentials.
• Commitment to repaying the loan upon completion of the training program.

3. Loan Disbursement

Once approved, funds will be disbursed directly to the training institutions, ensuring that loans are used solely for skill acquisition programs.

4. Loan Repayment Plan

Repayment will be structured and flexible, allowing beneficiaries to pay back in manageable installments after securing employment or starting a business.

Challenges and Considerations

While the expansion of the Student Loan Scheme to skill acquisition programs is a welcome development, certain challenges must be addressed to ensure its success:

1. Awareness and Accessibility

Many Nigerians may not be aware of the opportunity. There is a need for nationwide awareness campaigns to ensure that eligible individuals fully understand how to apply.

2. Ensuring Proper Implementation

To avoid corruption and mismanagement, NELFUND must enforce strict monitoring and evaluation measures to track fund disbursement and utilization.

3. Loan Repayment Mechanism

A proper structure must be put in place to ensure smooth loan repayment. Applicants must be given realistic timelines to repay their loans without excessive financial burden.

4. Collaboration with Accredited Training Centers

NELFUND must partner with certified vocational institutions to maintain quality standards and ensure that beneficiaries receive valuable and industry-relevant training.

Conclusion

The expansion of the Student Loan Scheme to include skill acquisition programs is a major step toward improving education and employment opportunities in Nigeria. With financial support from NELFUND, Nigerians can now acquire technical and vocational skills without the burden of immediate payment. This initiative is set to reduce unemployment, boost entrepreneurship, and enhance workforce development across various industries.

As the application process unfolds, interested individuals should stay informed and prepare to apply once the official portal is launched. By leveraging this financial opportunity, Nigerians can take charge of their careers, develop in-demand skills, and contribute to national economic growth.