PUNCH
On Monday, the President signed into law a bill establishing an education bank that will provide interest-free loans to “indigent students.” The clumsily titled bill, “An Act to Provide Easy Access to Higher Education For Nigerians Through Interest-Free Loans From Nigeria Education Bank Established in this Act with a View To Provide Education for All Nigerians and for Related Matters” has reportedly been in the works since 2016. According to presidential aides, the initiative will help “indigent students” fund educational pursuits in public institutions, be they in universities, polytechnics, or vocational training centres.
People object to student loans for many useful reasons, but this initiative does not yet look like it will ensnare the destinies of the students who take them. Whether it will be properly managed is another argument altogether.
Where things get interesting is the income requirement. To access the loan, the student or their family must not make more than a N500, 000 income per annum. For a law that will supposedly provide “easy access to higher education…for all Nigerians,” this is a curious characterisation of who belongs to the indigent class. If a law that supports the indigent pegs the income level at <N42,000 per family monthly, then we have an interesting inkling into what the government classifies as “indigent.”
Nigeria’s poverty rate has typically been measured through dollar figures. Presently, the official and international measure of poverty rate is counted as living on less than $1.90 daily. When the National Bureau of Statistics launched the results of the 2022 Multidimensional Poverty Index Survey that found that 63 per cent of persons living within Nigeria (133 million people) are multidimensionally poor, they did not mark their assessment of poverty through income level. They used other descriptive means. What resonates between those who calculate the average poverty rate in dollars and those who focus on qualitative means is that most Nigerians are poor and such poverty is not only about money but also access to certain facilities.
While a broad category of Nigerians will fall under the <N500, 000 mark, I still wonder at the image of the “ideal” (or un-ideal) low-income family that exists in the mind of the bill drafters and the government officials who pushed into a law. If such a family has a car, the average monthly sum they are not supposed to exceed is less than the costs of filling up the petrol tank under the new fuel pricing regime. I suppose it does not matter to the bill drafters how many people must comprise this hypothetical family, as long as they live on less than N42,000 monthly. Besides, how do they define their idea of “family” given the complexities of the Nigerian socio-cultural realities? Does “family” mean the nuclear variety or the extended one? Monogamous vs. polygamous families, which one?
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