President Bola Ahmed Tinubu has explained that the Federal Government introduced a Staff Loan Scheme for tertiary institutions to ease financial pressure on academic and non-academic workers and improve productivity across Nigeria’s higher education sector.
The President disclosed this at the 45th convocation ceremony of Ahmadu Bello University (ABU), Zaria, where he was represented by the Minister of State for Education, Prof. Suwaiba Said Ahmad.
According to Tinubu, the loan scheme is part of broader welfare reforms aimed at creating a more supportive working environment for university staff, enabling them to concentrate on teaching, research and community service without the burden of personal financial stress.
He said the scheme was developed through the Federal Ministry of Education in partnership with the Bank of Industry (BOI), which is providing the funds at zero interest, while the Federal Government covers the full cost of interest as part of its staff welfare obligations.
The President revealed that some beneficiaries had already accessed the loans since last year, adding that ₦40 billion has been set aside for disbursement in the current year. Individual beneficiaries are eligible to access loans ranging from ₦1 million to ₦10 million, depending on qualification and need.
He explained that the loans are repayable over five years, with a one-year moratorium, a structure designed to ensure affordability and long-term sustainability for beneficiaries.
Beyond staff welfare, Tinubu also addressed the challenge of electricity supply in Nigerian universities, commending the management of Ahmadu Bello University for reducing rising energy costs through effective conservation measures.
He urged the university to move beyond theoretical discussions by developing and implementing a comprehensive energy policy that delivers practical and sustainable solutions to power challenges on campus. According to him, such a policy could serve as a model for other tertiary institutions nationwide.
The President recalled that during the university’s 44th convocation, he had pledged deliberate federal intervention to address electricity shortages in universities. He said that promise was being fulfilled through the Energising Education Programme (EEP), jointly implemented by the Federal Government, the Rural Electrification Agency (REA) and the Federal Ministry of Education.
Under the programme, Tinubu said arrangements had been concluded to provide 24-hour electricity supply to all federal tertiary institutions. He noted that Phases I to III of the EEP have already delivered more than 100 megawatts of clean energy to 24 federal universities and their teaching hospitals.
He added that Ahmadu Bello University and several other institutions have been included in Phase IV of the project, which is expected to commence soon.
According to the President, the uninterrupted power supply will improve learning conditions, enhance research output, boost staff productivity and support innovation and entrepreneurship, ultimately contributing to national economic growth.
Addressing graduating students, Tinubu congratulated them on completing their studies and encouraged them to apply their knowledge productively while committing to lifelong learning. He emphasised the importance of job creation, rather than job seeking, noting that the university’s entrepreneurship initiatives were already helping students prepare for life after graduation.
He specifically referenced the Students Enterprise Competition organised by the university’s International Centre of Excellence for Rural Finance and Entrepreneurship, describing it as a practical step toward nurturing future entrepreneurs.
