Student Loans (Access to Higher Education) (Repeal and Re-enactment) Act, 2024
Repeals the 2023 student loans Act and sets up the Nigerian Education Loan Fund (NELFUND) as a body corporate giving loans for tuition, fees and upkeep.
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The Act replaces the Students Loans Act of 2023 and establishes the Nigerian Education Loan Fund (NELFUND) to give loans to qualified Nigerians for tuition, fees, charges and upkeep at approved tertiary and vocational institutions. Per PLAC's analysis it removes the N500,000 income threshold and the two-guarantor requirement, takes 1% of taxes, levies and duties collected by the FIRS into a General Reserve Fund, starts enforcement only two years after national youth service, caps repayment deductions at 10% of gross income, and requires employers to ask the Fund about a prospective employee's loan status on pain of a fine of not less than N2,000,000 or at least a year in prison. The Senate and House passed it on 20 March 2024 and the President signed it on 3 April 2024.
Who this affects
Students in public and approved tertiary and vocational institutions, graduates repaying loans, and the institutions that receive tuition payments.
What it changes
- 1NELFUND becomes a body corporate that can sue and be sued, with a board of directors and a management team led by a Managing Director (PLAC analysis).
- 2Loans cover tuition and other fees payable to the school and a maintenance allowance for the student; the income threshold of N500,000 and the two guarantors required by the 2023 Act are removed (PLAC analysis).
- 3Enforcement may not begin until two years after completion of the National Youth Service Corps programme or exemption; repayment is by monthly deductions not exceeding 10% of the beneficiary's gross income (PLAC analysis).
- 4General Reserve Fund receives 1% of all taxes, levies and duties collected by the FIRS and accruing to the Federal Government (PLAC analysis; State House statement).
- 5Employers must ask the Fund about a prospective employee's loan status; contravention carries a fine of not less than N2,000,000 or imprisonment of not less than one year, or both (PLAC analysis).
- 6The Board may exempt a beneficiary from repayment in cases of death, hardship or equity, and must ensure a minimum national spread of loans each year (PLAC analysis).
3 sections
Objective of the Fund.As quoted in PLAC's bill analysis of the Act
provide loans to qualified Nigerians to pay for tuition, fees, charges and upkeep during their course of study in approved tertiary education institutions and vocational and skills acquisition institutions in Nigeria
National spread.As quoted in PLAC's bill analysis of the Act
minimum national spread of loans approved and disbursed in each financial year; and approval and disbursement of loans under this Act shall be subject to the availability of funds and principles of justice, fairness and inclusion
-.Repayment (paraphrased from PLAC's analysis)
(paraphrased) The Fund shall not initiate enforcement action against any beneficiary until two years after completion of the National Youth Service Corps programme or exemption from it; repayment is by monthly deductions not exceeding 10% of gross income until the loan and all charges are repaid.
This is a readable rendering for citizens. The authoritative text is the gazetted version — linked below.
Passed· National Assembly
20 March 2024
PLAC analysis: passed by the Senate and the House of Representatives on Wednesday 20 March 2024.
Assented
3 April 2024
Signed on Wednesday 3 April 2024.
Official text
The gazetted document
Today in the Assembly
Sittings, motions and divisions, day by day
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