(2024)
SECTION 1
(1) There is established the Nigerian Education Loans Fund (in this Act referred to as “the Fund”).
(2) The Fund-
(a) is a body corporate with a common seal, perpetual succession; and
(b) may sue and be sued in its corporate name.
(3) Subject to the limitations contained in this Act, the Fund may acquire, hold and dispose of movable and immovable property for the purpose of its functions and objectives.
Establishment of the Nigerian Education Loans Fund.
SECTION 2
The objectives of the Fund are to-
(a) provide loans to qualified Nigerians to pay for tuition, fees, charges and upkeep during their course of study in approved tertiary institution, vocational and skills acquisition institutions in Nigeria;
(b) build, operate, and maintain a diversified pool of funds to provide loans to qualified applicants and ensure access to higher education, vocational training, and skills acquisition; and
(c) ensure the recovery of all debts due to the Fund from loans granted to qualified applicants except, where the Board is of the opinion that the borrower should be exempted from repaying his loan by reason of- (i) death, or (ii) incapacitation where such results in impossibility or undue difficulty in meeting repayment obligations.
Objectives of the Fund.
SECTION 3
The functions of the Fund are to-
(a) receive and process applications for loans from Nigerian students and intending students of approved tertiary institutions, vocational and skills acquisition institutions in Nigeria;
(b) approve and disburse loans or reject loan applications, subject to the policies, guidelines and criteria set by the Board;
(c) hold, manage and invest money accruing to the Fund, subject to investment guidelines set by the Board;
(d) carry out such other activities and perform such other functions which, in the opinion of the Board, are necessary, incidental or conducive to the attainment of the objectives of the Fund.
Functions of the Fund.
SECTION 4
(1) The Fund has power to-
(a) invest and deal with the money of the Fund not immediately required on securities or investments and in such manner, as the Board may determine;
(b) sell or dispose of the whole or any part of the property or investments of the Fund, either together or in portions, for such consideration and on such terms as the Board may approve;
(c) subject to the approval of the president, issue education bonds or other debt instruments;
(d) identify and acquire funds, not including debt, for the purpose of achieving the objectives of this Act;
(e) engage, on a competitive basis, such consultants, advisers and other service providers as are necessary or expedient for the performance of its functions;
(f) pay for the Fund’s operational expenses and incur expenditures which, in the opinion of the Board, are necessary, incidental or conducive to the attainment of the objectives and functions of the Fund;
(g) enter contract options and other derivative financial instruments (including in currencies other than the Naira) for purposes which include- (i) eliminating or reducing the risk of loss arising from changes in interest rates, currency exchange rates or other factors of similar nature, (ii) eliminating or reducing the costs of raising funds, borrowing or the cost of other transactions carried out in the ordinary course of business, or (iii) increasing return on investment;
(h) enter into contracts of insurance with respect to any of its activities and property;
(i) enter into a partnership or joint venture for the purpose of performing any of its functions; and
(j) recover any loan granted under this Act through any legal means, including an action for debt recovery, and that action shall not be statute-barred.
(2) The Fund may, with the approval of the Board, perform or exercise any of its functions or powers under this Act, other than the power to make regulations through an officer or agent of the Fund or through any other person authorised by the Fund in that behalf.
Powers of the Fund.
SECTION 5
The Fund may appoint, on a selective competitive basis-
(a) asset managers to manage assets as may be specified by the Board; and
(b) recovery agents for the purpose of recovering debts owed to the Fund as may be specified by the Board.
Appointment of asset managers and recovery agents.
SECTION 6
(1) There is established for the Fund a Board of Directors (in this Act referred to as “the Board”) responsible for-
(a) the attainment of the objectives of the Fund;
(b) the general supervision of the affairs of the Fund;
(c) formulating policies for regulating the management of the Fund;
(d) setting the guidelines, criteria, and conditions for granting and recovery of loans by the Fund;
(e) employing, either directly or on transfer or secondment from any civil or public service in the Federation, such number of employees as may, in the opinion of the Board, be required to perform the functions of the Fund under this Act; and
(f) pay to persons so employed such remuneration, including allowances, as the Board may, with the approval of the President, determine.
(2) The Board may appoint sub-committees of its members and external advisors as it may deem necessary to facilitate the performance of its functions under this Act.
Establishment and responsibility of the Board of Directors.
SECTION 7
(1) The Board shall consist of the following members to be appointed by the President-
(a) a non-executive Chairman;
(b) a representative of each of the following Federal Ministries, who shall not be below the rank of a Director- (i) Education, and (ii) Finance;
(c) a representative each of the following agencies who shall not be below the rank of a Director- (i) Joint Admissions and Matriculation Board, (ii) National Universities Commission, (iii) National Board for Technical Education, (iv) National Commission for Colleges of Education, (v) National Identity Management Commission, (vi) Federal Inland Revenue Service, (vii) Central Bank of Nigeria, and (viii) National Youth Service Corps;
(d) Five persons, one each to represent the following interests- (i) universities, (ii) polytechnics, (iii) colleges of education, (iv) Nigerian students of tertiary institutions, and (v) organised private sector.
(2) Appointments to the Board subject to subsection (1) (a) and (d) shall reflect the six geo-political zones of the Federation.
(3) Members of the Board, other than the ex-officio members, shall hold office for a term of four years in the first instance and may be eligible for reappointment for a further term of four years and no more.
Composition, appointment and tenure of members of the Board.
SECTION 8
A person shall not be appointed or remain a member of the Board if he is-
(a) adjudged bankrupt or suspends payment to, or compounds or makes an arrangement with, his creditors;
(b) found guilty of misconduct in relation to his duties;
(c) convicted of an offence involving fraud, dishonesty or other offence, the maximum penalty for which exceeds imprisonment for six months;
(d) a debtor to an eligible financial institution, and the debt owed qualifies as an eligible bank asset;
(e) disqualified or suspended from practising his profession in Nigeria by order of a competent court made in respect of him personally; or
(f) disqualified or restricted from being a director of any corporate or financial institution by any law or regulatory body.
Disqualification and cessation of office.
SECTION 9
(1) A member of the Board, other than an ex-officio a member, may resign his appointment by notice in writing under his hand addressed to the President, and that member shall, on the date the President receives the notice, cease to be a member of the Board.
(2) Notwithstanding the provisions of section 7 of this Act, the President may remove a member of the Board at any time for inability to perform the functions of his office, whether arising from infirmity of mind or body or any other cause or for misconduct.
Resignation and removal of members of the Board.
SECTION 10
(1) Members of the Board shall not be paid for the performance of their duties on the Board.
(2) Members of the Board are entitled to reasonable sitting allowances, individual travel expenses and other appropriate entitlements as the Board may determine, consistent with best practices and the mandate of the Fund.
Remuneration of members of the Board.
SECTION 11
(1) The Managing Director of the Fund shall provide to the Board, in every quarter, a report in writing, on the operations, assets, liabilities and performance of the Fund, and significant trends affecting the Fund and the Board shall meet regularly to consider these reports.
(2) The meetings of the Board shall be convened by the Secretary, at least once every quarter or at the request of the Chairman, or a majority of members of the Board, by notice in writing specifying the date, time, and location of the meeting.
(3) The Fund shall defray all costs relating to the functions of the Board, and the costs shall be reported in the annual report of the Fund.
(4) The provisions contained in the schedule to this Act, shall have effect with respect to the proceedings of the Board and the other matters contained in it. [Schedule]
Meetings of the Board.
SECTION 12
(1) The Board shall have a Secretary who shall be-
(a) appointed by the President; and
(b) the General Counsel of the Fund.
(2) The Secretary-
(a) shall be a legal practitioner who has been so qualified for at least 10 years;
(b) shall hold office for five years on such terms, conditions and remuneration as may be approved by the President on the recommendation of the Board; and
(c) may be reappointed for a further term of five years and no more.
(3) The Secretary shall-
(a) issue notices of meetings of the Board;
(b) ensure Board and management compliance with extant laws and regulations, including the provisions of this Act;
(c) keep records of the proceedings of the Board; and
(d) discharge such duties as the Managing Director or the Board may direct.
Secretary of the Board.
SECTION 13
(1) There is for the Fund, a Managing Director who shall be appointed by the President.
(2) The Managing Director-
(a) shall hold office for five years on such terms, conditions and remuneration as may be approved by the President on the recommendation of the Board;
(b) may be reappointed for a further term of five years and no more; and
(c) is responsible to the Board in performing his functions and implementing the strategic plans and objectives of the Fund.
(3) The Managing Director is the chief executive officer of the Fund and responsible for-
(a) the execution of the policy and administration of the Fund;
(b) the direction, supervision, and control of all other employees of the Fund;
(c) subject to such restrictions as the Board may impose, disposing of all questions relating to the service of the employees, their pay, allowances, and privileges; and
(d) matters concerning the accounts and records of the Fund.
(4) The functions of the Managing Director shall be performed during his absence by one of the Executive Directors designated by the Board for that purpose.
Appointment, tenure, responsibilities of the Managing Director.
SECTION 14
(1) The President shall appoint two Executive Directors for the Fund to assist the Managing Director in performing his functions under this Act.
(2) An Executive Director-
(a) shall hold office for five years on such terms, conditions and remuneration as may be approved by the President on the recommendation of the Board;
(b) may be reappointed for a further term of five years and no more; and
(c) shall perform such functions as may be assigned by the Board and the Managing Director.
(3) The Executive Directors appointed under subsection (1) shall be designated- (i) Executive Director, Finance and Administration; and (ii) Executive Director, Operations.
Appointment, tenure, responsibilities of the Executive Directors.
SECTION 15
Notwithstanding the provisions of sections 12, 13 and 14 of this Act, the President may remove the Secretary, Managing Director or Executive Directors at any time for inability to perform the functions of their offices, whether arising from infirmity of mind or body or any other cause or for misconduct.
Removal of the Secretary, Managing Director or Executive Directors of the Fund.
SECTION 16
(1) The Fund may, with the approval of the Board, make rules relating generally to the conditions of service of staff of the Fund, and the rules may provide for-
(a) the appointment, dismissal, discipline, pay and leave of, and the security to be given by, the employees;
(b) appeals by the employees against dismissal or other disciplinary measures;
(c) the grant of pensions, gratuities and other retirement benefits to the employees or their dependants, and the grant of gratuities to the estates or dependants of deceased employees of the Fund;
(d) the establishment and maintenance of medical benefit funds, superannuation funds and provident funds, and the contributions payable to and the benefits receivable from those funds.
(2) Rules made under subsection (1) shall be brought to the notice of all affected persons but need not be published in the Federal Government Gazette.
Appointment, remuneration, discipline of other staff.
SECTION 17
(1) The Fund shall receive into its General Reserve Fund-
(a) 1% of all taxes, levies and duties collected by the Federal Inland Revenue Service, and accruing to the benefit of the Federal Government of Nigeria;
(b) all sums which may be appropriated to the Fund by an Act of the National Assembly;
(c) repayment of capital and interest on any loan granted by the Fund;
(d) investment income of the Fund;
(e) money borrowed from any source in accordance with the provisions of this Act;
(f) money from education bonds or other debt instruments;
(g) money from the Federal Government of Nigeria, as may be directed and approved by the President;
(h) all sums collected as charges and fees by the Fund in the course of performing its functions under this Act; and
(i) all sums accruing to the Fund as donations, gifts, grants, and endowments.
(2) The Fund shall charge to the General Reserve Fund-
(a) amounts payable as loans to qualified applicants for tuition, fees, charges and upkeep;
(b) the operational expenses of the Fund and expenditures which are necessary to attain the objectives and functions of the Fund including remuneration and other costs of employment of staff of the Fund and amounts payable to the members of the Board- (i) expenditures under this paragraph shall be approved per annum by the President on the recommendation of the Board, and (ii) provided that the National Assembly shall make such appropriations from the General Reserve Fund to cover the operational costs of the Fund, so long as not more than 10% of the revenue of the Fund in each year, may be appropriated for the operational expenses of the Fund;
(c) interest on the payment of money borrowed on behalf of the Fund and amounts payable for the redemption of bonds and debt securities issued by the Fund;
(d) commission or fees payable to any agent or consultant engaged by the Fund; and
(e) any other payment for anything incidental to or in connection with the functions of the Fund under this Act.
General Reserve Fund.
SECTION 18
The Board shall cause to be prepared, not later than 30 September in each year, an estimate of the expenditure and income of the Fund during the succeeding year which shall be submitted to the President through the Minister for approval.
Annual estimates.
SECTION 19
The Board shall cause to be kept, proper accounts of the Fund and proper records in relation to it, and when certified by the Board, the accounts shall, within three months after the end of each financial year, be audited by an independent firm of auditors as the Board choose from a list of auditors approved by the Auditor-General for the Federation.
Accounts and audit.
SECTION 20
The Fund shall, within six months after the end of each financial year, publish in widely available media and present a copy of the accounts as audited to-
(a) the President; and
(b) the National Assembly.
Annual reports.
SECTION 21
(1) The Fund may accept gifts of land, money or other property on the terms and conditions as may be specified by the person or organisation making the gift.
(2) The Fund shall not accept any gift if the conditions attached by the person or organisation making the gift are inconsistent with the functions of the Fund under this Act.
Power to accept gifts.
SECTION 22
(1) The Fund is exempted from the payment of income tax on any income accruing from investments made by the Fund.
(2) The provisions of any enactment relating to the taxation of companies or trust funds does not apply to the Fund.
Exemption from tax.
SECTION 23
(1) An applicant for a loan under this Act shall-
(a) be a citizen of Nigeria;
(b) have secured admission into any university, polytechnic, college of education, institution established by the Federal Government or State Government, or a vocational or skills acquisition institution licensed by the Federal Government; and
(c) apply in the form and manner as prescribed by guidelines issued by the Board.
(2) Notwithstanding the Data Protection Act 2023 or any other law, an applicant for a loan shall provide such personal details, including biometrics and any other private data, which shall ensure his unique identification for the purpose of the disbursement and recovery of the loan. [Act No. 37, 2023]
(3) Notwithstanding subsection (1), the Board shall have the power to make specific regulations regarding the method and process of loan applications and the criteria for granting loans in each financial year.
Eligibility of applicants.
SECTION 24
(1) The Board shall take care to make provisions ensuring a minimum national spread of loans approved and disbursed in each financial year.
(2) Approval and disbursement of loans under this Act is subject to availability of funds and principles of justice, fairness and inclusion.
National spread and inclusion.
SECTION 25
An applicant is disqualified from accessing the loan if-
(a) proven to have defaulted in respect of any previous education loan granted by the Federal Government of Nigeria, a state government, or any of their agencies or departments;
(b) at the time of application, he is a beneficiary of any education loan or other scholarship scheme from the Federal Government of Nigeria, a state government, or any of their agencies or departments;
(c) found guilty of misconduct involving plagiarism, examination malpractice, cultism, possession or use of hard drugs and violence by the administrative authority of any tertiary institution empowered by law or regulation to make such findings;
(d) convicted of- (i) any offence involving dishonesty or fraud, (ii) drug offences, (iii) offences of violence against persons, or (iv) cultism.
Disqualification of applicants.
SECTION 26
(1) Applications to the Fund shall be processed and applicants and their selected institutions shall be informed if their applications have been successful not later than 30 days from the date of application.
(2) Disbursement of fees and charges payable to institutions and payment of upkeep to successful applicants shall resume not later than 30 days from the commencement of each academic year.
Approval and disbursement of loans.
SECTION 27
Applicants to the Fund may apply for loans to cover-
(a) tuition, fees and other charges payable to the institution; and
(b) maintenance allowance payable to the student.
Loan cover.
SECTION 28
(1) Any beneficiary of the loan to which this Act refers shall commence repayment on graduation from the course for which the loan was obtained, having secured employment in any capacity.
(2) A beneficiary who desires, may commence repayment of the loan at any time before the completion of his course of study.
(3) The Fund shall not initiate enforcement action against a beneficiary of loan from the Fund until two years after the completion of the National Youth Service Corps programme or exemption from it.
(4) Repayment of the loan shall be by monthly deductions not exceeding 10% of the gross income of the beneficiary until the loan and all charges are repaid to the Fund.
(5) Notwithstanding the provisions of subsection (3), a beneficiary of a loan may receive an extension from the Fund by providing a sworn statement in such manner as the Board may determine, indicating that he is not employed in any capacity and is not receiving any income.
(6) A person who provides a false statement to the Fund under this section, commits an offence and is liable on conviction to imprisonment for three year.
Repayment of loan.
SECTION 29
(1) From the commencement of this Act, every prospective employer shall have a duty to enquire from the Fund and be satisfied as to the student loan status of persons they employ.
(2) An employer who is informed that its employee is a beneficiary of student’s loan from the Fund who has not completed repayment, shall provide such information as the Fund may require, to initiate collection of the loan and charges from the beneficiary.
(3) An individual employer or a director or officer of a corporate employer who contravenes subsection (1) commits an offence and is liable on conviction to a fine of at least N2,000,000 or imprisonment for a term of at least one year or both.
Duty of employers.
SECTION 30
An action shall not lie against an officer of the Fund or other persons appointed or authorised to perform any function under this Act in respect of anything done or omitted by them in good faith in the exercise or performance of any power, authority or function conferred or imposed on him under this Act.
Protection against adverse claim.
SECTION 31
(1) An officer of the Fund or a person appointed or authorised to perform any function under this Act, is not personally liable for any loss or damage arising out of any act done or omitted to be done in good faith under this Act, unless the damage or loss is due to the officer’s negligence or failure to comply with the provisions of this Act.
(2) An officer of the Fund or a person appointed or authorised to perform any function under this Act shall be indemnified out of the Fund against any proceedings, where the act complained of is not ultra vires his powers.
Indemnity.
SECTION 32
(1) Subject to the provision of section 174 of the Constitution of the Federal Republic of Nigeria 1999, the Fund may compound any offence punishable under this Act by accepting such sums of money as it deems fit, not exceeding the amount of maximum fine to which that person would have been liable if he had been convicted of the offence. [Cap. C23 LFN, 2004]
(2) Any money to be paid under subsection (1), shall be paid into the General Reserve Fund.
Power to compound offences.
SECTION 33
(1) A civil action may only be commenced against the Fund or any of its authorised officers at the expiration of 30 days after a written notice of intention to commence the action has been served on the Fund by the intending plaintiff or his agent and the notice shall clearly and explicitly state the-
(a) cause of action;
(b) particulars of the claim;
(c) relief which he claims; and
(d) name and place of abode of the intending plaintiff.
(2) The notice referred to in subsection (1), summons or other documents required or authorised to be served on a committee, the Fund or any of its authorised officers under this Act or any other enactment or law, may be served by-
(a) delivering it to the Secretary of the Fund; or
(b) sending it by registered post addressed to the Secretary of the Fund.
Legal proceedings.
SECTION 34
The Federal High Court shall has jurisdiction to try offences, hear and determine proceedings arising under this Act.
Jurisdiction.
SECTION 35
In any action or suit against the Fund or any of its authorised officers, no execution Shall be levied, or attachment process issued against any of its property unless at least three months’ notice of the intention to execute or attach has been given to the Fund.
Restriction on execution against property of the Fund.
SECTION 36
(1) The Students Loans (Access to Higher Education) Act, 2023 is repealed.
(2) All assets, funds, resources and other moveable or immovable properties which immediately before the commencement of this Act were vested in the repealed Act shall by virtue of this Act be vested in the Fund.
(3) All appointments of officers for the Fund shall be pursuant to the provisions of this Act.
Repeal and savings provisions.
SECTION 37
In this Act- “applicant” means a Nigerian student who has applied for a loan from the Nigerian Education Loans Fund established under this Act; “beneficiary” means a successful applicant for the student loan; “employment” means a beneficiary engaged in economic activities which earns income either from external sources or personal endeavours under another person or himself; “Fund” means the Nigerian Education Loans Fund established under this Act; “tertiary institution” means any university, polytechnic, college of education established by the Federal Government or State Government, or a vocational or skills acquisition institution licensed by the Federal Government; “loan” means loan to be granted to qualified students of any university, polytechnic, college of education established by the Federal Government or State Government, or a vocational or skills acquisition institution licensed by the Federal Government; “Minister” is Minister responsible for the Federal Ministry of Education; “student” means an applicant who has obtained a valid admission into a tertiary institution; “President” means the President of the Federal Republic of Nigeria.
Interpretation.
SECTION 38
This Act may be cited as the Students Loans (Access to Higher Education) Act, 2024.
Citation.
Section 11(4)
SUPPLEMENTARY PROVISIONS RELATING TO THE BOARD
Proceedings of the Board
1. Subject to this Act and section 27 of the Interpretation Act Cap. I23, Laws of the Federation of Nigeria, the Board may make standing orders regulating its proceedings or that of any of its committees.
Meetings
2. At every meeting of the Board, the Chairman shall preside and, in his absence, the members present at the meeting shall appoint one of their number to preside at the meeting.
3. The quorum at a meeting of the Board shall consist of the Chainman (or, in an appropriate case, the person presiding at the meeting under paragraph 2 of this Schedule) and four other members.
Advice
4. Where, on any special occasion, the Board desires to obtain the advice of any person on any matter, it may co-opt that person to be a member for as many meetings as may be necessary, and that person while so co-opted, shall have all the rights and privileges of a member except that he shall not be entitled to vote or count towards a quorum.
Committees
5. Subject to its standing orders, the Board may appoint such number of standing and ad hoc committees as it deems fit, to consider and report on any matter which the Board is concerned-
(a) a committee appointed under this paragraph shall be presided over by a member of the Board and shall be made up of such number of persons, not necessarily members of the Board, as may be determined by the Board;
(b) the quorum of any committee set up by the Board shall be as may be determined by the Board.
Miscellaneous
6. (1) The affixing of the seal of the Fund shall be authenticated by the signature of the Chairman or any other person generally or specifically authorised by the Board to act for that purpose and that of the Managing Director.
(2) Any contract or instrument which, if made by a person not being a body corporate, would not be required to be under seal, may be made or executed on behalf of the Fund by the Managing Director or by any other person generally or specially authorised by the Board to act for that purpose.
(3) Any document purporting to be a contract, instrument or other document duly signed or sealed on behalf of the Fund shall be received in evidence and shall, unless the contrary is proved, be presumed without further proof to have been so signed or sealed.
(4) The validity of any proceedings of the Board or of any of its committees shall not be affected by-
(a) any vacancy in the membership of the Board or committee;
(b) any defect in the appointment of a member of the Board or committee; or
(c) reason that any person not entitled to do so, took part in the proceedings of the Board or committee.
(5) A member of the Board or any of its committees who has a personal interest in any contract or arrangement entered into or proposed to be considered by the Board or committee, shall immediately disclose his interest to the Board or committee and shall not vote on any question relating to the contract or arrangement.
(6) A member of the Board shall not be personally liable for any act or omission done or made in good faith while engaged on the business of the Fund.
