Senate, House Reach Agreement To Increase Student Loan To ₦10 Billion

Following the harmonization of the ₦2.17 trillion 2023 Supplementary Budget, both the Senate and the House of Representatives have increased the student loan appropriation to ₦10 billion. Notably, the controversial presidential yacht, initially budgeted at ₦5 billion, was excluded from the final budget.

President Bola Ahmed Tinubu assured Nigerians that the allocated funds for student loans would be judiciously utilized after signing the budget into law. The House transferred the ₦5 billion designated for the yacht to the student loan item, while the Senate retained the original items as presented.

Senate Appropriation Committee Deputy Chairman, Mohammed Ali Ndume, emphasized the necessity of harmonization for the President to sign the Appropriation Bill. The Senate probed the circumstances surrounding the yacht acquisition, asserting that it occurred before the Tinubu Administration.

Amid public outcry, the Presidency clarified that the ₦5 billion allocated for the “Presidential Yacht” was for a naval vessel, not a luxury item. The Navy confirmed receiving the vessel for training purposes but had not paid for it due to cash constraints.

President Tinubu commended the National Assembly for the swift consideration and passage of the budget during the signing ceremony. Minister of Budget and Economic Planning, Atiku Bagudu, outlined allocations, with 32% for federal civil servants’ wage award, 30% for defense and security, and 35% for infrastructure.

The National Assembly increased the budget for Defense to ₦546 billion and allocation to police formations to ₦50 billion. Senate Committee on Navy, tasked with investigating the “presidential yacht,” aims to provide an accurate understanding of the situation and modernize naval facilities.

The supplementary budget of ₦2.176 trillion, passed on November 2, includes the student loan policy initiated by President Tinubu to support indigent students. Beneficiaries are expected to repay the loans after graduation, ensuring it operates as a revolving fund, and the policy is set to take effect from January.