AMEND 2024 Student Loans Act and TETFund law (2), by Afe Babalola

ACCORDING to statistics from the Nigerian Universities Commission, NUC, there are currently 263 tertiary institutions in Nigeria. And 53 of these are federal institutions, 63 are state-owned, and 147 are private institutions. There are more private tertiary institutions than federal and state institutions combined in Nigeria.

There is no gainsaying that if the private tertiary institutions and the students of private tertiary institutions are excluded from any programme in Nigeria today, the implication is that the majority of institutions and their students in Nigeria are left out.

The earliest initiatives and developments in tertiary education in Nigeria was at the instance of Federal and Regional governments; and ultimately, state governments. At that time, there was no teeming population of aspirants who aspired to study at the tertiary level. The story is very different today because there are now millions of aspirants to tertiary institutions every year and there are not enough places to accommodate them.

As the population of aspirants seeking to acquire tertiary education increased, government at the national and sub-national levels responded by establishing more institutions to absorb and train the teeming population of aspirants. When it became clear that the various arms of government could not handle the insufficiency of the numerous institutions, the Nigerian government realised that it would be necessary to invite the private sector for help.

Since 1999, the Federal Government has been granting licenses to private sector promoters to establish private universities in Nigeria. This is obviously in appreciation of the need for private institutions of higher learning to render services and contribute to the socio-economic well-being of Nigeria and Nigerians.

Within the first two decades of establishing private institutions, the private institutions have competed favourably with the government- owned institutions as recent rankings by reputable ranking bodies indicate. The private universities have restored the hope of students and sponsors alike that students can study with a stable calendar and graduate as planned.

Without delving into all the particular achievements of private universities in Nigeria, especially in recent times, it needs to be said that all the achievements of the private universities and their students have been accomplished through private financing.

There has been for some time certain discriminatory policies and practices against private tertiary institutions in Nigeria.

Nigeria by legislation operates a taxpayer subsidies scheme first established through the Education Trust Fund and later Established as the Tertiary Education Trust Fund, TETFund. This fund has been strictly applied to the development of government-run tertiary institutions whether at the national or sub-national level. For instance, on Sunday February 4, 2024, the Executive Secretary of TETFund, Mr, Sonny Echono, announced the approval of disbursements of funds to aid the federal tertiary institutions in Nigeria alone; it was a painful reminder and pointer that many citizens of Nigeria will never benefit from the disbursement which is aimed at bolstering tertiary education in Nigeria for the simple fact that those citizens chose to study in private tertiary institutions.

TETFund is an intervention fund set up to rehabilitate, restore and consolidate tertiary education in Nigeria as contained in the Tertiary Education Trust Fund Act, 2011. The origin of the fund lies in the Education Trust Fund of 1993.  TETFund is financed by Education Tax levied on all registered companies in Nigeria, with the exception of companies that provide educational services. The education tax payable by companies is 3% of the profits of the companies.

The funds are for the provision or maintenance of:

1. Essential physical infrastructure for teaching and learning;

2. Institutional material and equipment;

3. Research and publications;

4. Academic staff training and development, and;

5. Any other critical and essential need for the improvement and maintenance of the standards in the higher educational institutions.

To date, the huge funds accruing to TETFund are only used to finance public institutions. The genesis of this unfortunate state of things is attributable to Sections 6(e), and 7(1) of the TETFund Act which expressly restrict the application of TETFund to public tertiary institutions. It is important to note that TETFund was originally conceived before the Federal Government invited willing and able promoters to establish private universities in Nigeria. With the reality today, TETFund should be extended to all higher educational institutions and if necessary, certain conditions to ensure transparency and accountability may be put in place.

If applicability of TETFund continues to be limited to public institutions, the implication will be that the Federal Government is limiting the benefit of such a laudable intervention to only the students of public or federal or state institutions and this approach can only be discriminatory because these institutions whether public or private are established for the ultimate aim of educating and empowering Nigerians.

Taxpayer subsidies in other climes

For brevity, I will utilise the USA as an example of what is obtainable in other climes. In the United State of America, research has shown that among elite private universities, like Harvard and Yale, the average taxpayer subsidy is $13,000 per student per year, while the annual subsidy at the most selective universities like the University of North Carolina, Chapel Hill, and the University of California, Los Angeles is more than $23,000.00 annually. This is support received directly from government.

How are private universities able to receive federal funding in the USA?

There are a number of established ways that private universities receive funding from the government in the USA. Some examples follow below:

Research Grants

Private colleges are able to acquire funding through research grants given by government agencies such as the National Science Foundation. Some of these grants are indeed available only to private tertiary institutions.

Technology Grants

Private universities can also apply for federal funding to finance specific technological improvements. Such grants include School Safety Grant Programme and educational technology grants like CARES Act Funding.

Students Financial Aid

Students that plan on attending private schools can opt in for federal student aid, meaning that the school will be receiving that federal aid to cover tuition and other educational fees. Students can apply to federal grants as well, being another source of financial aid.

Work Study Programmes

Most institutions utilize work-study programmes, including private schools. Students at private universities can have the opportunity to work part-time to receive financial aid, which is federally funded.

How are students of private tertiary institutions able to receive fderal funding in the USA?

Regardless of what type of college or university that a student attends, students are eligible for federal student aid or FAFSA. This is a system where students can apply yearly for aid towards tuition.

Student loans and taxpayer subsidies in Nigeria, a different ball game in comparison to the USA

The relief and anticipation that greeted the Presidential assent to the Student Loans(Access to Higher Education) (Repeal and Re-enactment) ACT 2024, was eclipsed for many by the fact that it had excluded the citizens of Nigeria who chose to study in private tertiary institutions which are duly licensed and accredited to offer courses and award degrees from benefitting in any way from the loans available under the Act.

The system established so far in Nigeria is sub-par and leaves much to be desired in the face of international best practices.

I have always identified the fact that both private universities and students of private universities need every assistance possible to improve learning facilities and teaching outcomes which in turn must translate to more gains for Nigeria and her citizens.

I have also always believed and advocated that students need support for tuition and subsistence. I have always supported students whether in public or private institutions whenever necessary and within the limits of my resources.

It must be appreciated that private universities meet and exceed the requirements for accreditation, and provide adequately equipped laboratories, good infrastructure, libraries, and parade highly qualified and committed teachers to deliver qualitative education that can only come to the fore where talents are expeditiously harnessed. International rankings of Nigerian universities clearly indicate that the private universities in Nigeria sit comfortably at the top of the ranking tables.

It is apposite to say that government should be able to provide support for students of Licensed Private Universities through student loans even if it will be funded to a particular maximum so that the students and their sponsors will make up these facilities.

My understanding is that no student is more of a Nigerian student than the other. Consequently, a fair, non-discriminatory loan system of general application to Nigerian students which would enable all Nigerian students to pay fees and support their studies is encouraged and advocated.

Private universities engage in the training of Nigerians just like the public universities and there should be no discrimination when it comes to training. All graduates can contribute to Nigeria irrespective of the nature of tertiary institution attended. In the end it is Nigeria that benefits from the products of both public and private institutions.