Nigeria’s National Assembly Passes Interest-Free Student Loan Bill
Lawmakers inside the National Assembly of Nigeria during a session in Abuja, Nigeria, Tuesday, May 16, 2006. 
Muhammad OsmanThe bill, which is sponsored by House of Representatives Speaker Femi Gbajabiamila, establishes the Nigerian Education Bank to offer student loans with no interest rates and more flexible repayment schedules.Interest-free student loans have been introduced by the Nigerian National Assembly this week.The bill establishes the Nigerian Education Bank, which will be responsible for monitoring and coordinating student loan programs all over the country, as well as approving and disbursing interest-free loans to qualified applicants.Aiming to enable Nigerian students in higher education to receive more financial aid during their studies, the legislation was proposed by the Speaker of the House of Representatives Femi Gbajabiamila.“The loan referred to in this Act shall be granted to students only for the payment of tuition fees,” the legislation reads. “The grant of the loan to any student under this Act shall be subject to the students/applicant(s) satisfying the requirements and conditions set out under this Act.”In order to apply for Nigerian Education Bank interest-free loans, the applicant must be enrolled in any Nigerian university, polytechnic, college or state vocational school.The application will be carried out by public higher education institutions on behalf of the qualified students.House Speaker Gbajabiamila stated that the legislation aims to remove obstacles faced by Nigerian students seeking higher education amid the high cost of living in the country. He also stressed that a well-educated citizenry is vital for the development and prosperity of Nigeria.The bill is currently awaiting President Muhammadu Buhari’s assent to become law.Student loan programs are offered in Nigeria by some commercial banks such as Access Bank, First Bank, and GT Bank. These banks grant student loans with relatively low interest rates in comparison to other non-student loans.
