ASUU Warns IMF And World Bank Pushing Student Loans To Divert Funds From Public Universities

*Says Student Loans Will Fail Like Education Bank, Calls for Grants and Scholarships Instead

The Academic Staff Union of Universities (ASUU) has stated that the proposed student loan scheme will keep students in perpetual debt.

This was contained in a statement on Thursday after the union’s National Executive Council meeting at the Niger Delta University, Wilberforce Island, Bayelsa State.

ASUU argued that the Students Loan Scheme, being pushed by international money lending agencies like the International Monetary Fund and World Bank would deprive public universities of funds.

The statement reads: “For the avoidance of doubt, the NEC of ASUU reiterated its rejection of the Students Loan Scheme which is being promoted by international money lending agencies such as IMF and World Bank.

“Nigerians should be aware that the scheme is a way of starving public universities of funding and a ploy to divert public funds into private universities owned by politically exposed individuals and their friends.

“NEC further observed that the students’ loan scheme will mortgage the entire university system and keep our promising students in perpetual indebtedness.

“If the scheme could fail in some better-managed economies, there is no guarantee that it will succeed in Nigeria where unbridled corruption, nepotism, and other unsavoury tendencies conspired to kill the Education Bank project after over five years of its existence.”

However, ASUU recommended that grants and scholarships be made available to students and the university system should reinstate the Needs-Based Budgeting System for increased efficiency if the State and Federal governments genuinely plan to uplift Nigerian students.

Prof. Emmanuel Osodeke, the National President of ASUU, stated in the statement that the union opposed the significant increase in school fees and maintained that money taken out of the government coffers ought to go toward funding universities instead.

The body added: “NEC condemns in its entirety the wave of fee hike without inputs of the victims across our campuses.

“Daily scandalous reports of stupendous funds diverted from government treasuries at state and Federal levels reinforce our belief that resources available to the country could support government-funded university education –without excessive pressures on parents as currently done.”