2024 Budget: Is N50 Billion Enough for Student Loan Scheme? Economist Speaks
- Despite the hundred per cent increase in the education budget in the 2024 appropriation bill, Nigeria has failed to meet the UNESCO-recommended quota
- UNESCO recommends that at least 15 to 26 per cent of a nation's budget be allotted to education
- However, President Bola Tinubu has been commended for earmarking N50 billion for the student loan scheme
Legit.ng journalist Segun Adeyemi has over 9 years of experience covering political events, civil societies, courts, and metro
FCT, Abuja - The N27.5 trillion 2024 budget presented by President Bola Ahmed Tinubu has earmarked N2.18 trillion for education.
It is 101.85 per cent more than the N1.08 trillion earmarked for the sector in the 2023 budget.
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The allocated funds include N1.23 trillion for the Federal Ministry of Education and its affiliated agencies, N251.47 billion for the Universal Basic Education Commission and N700 billion designated for transfers to the tertiary education trust fund.
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N50bn a good start for student loan scheme, economist says
Additionally, N50 billion was allocated for the Federal Government's student loan scheme.
Reacting to the budget for education and the N50 billion earmarked for the student loan scheme, a foremost economist, Paul Alaje, said the budget does not meet the UNESCO benchmark of a minimum of 15 to 26 per cent.
In a brief chat with Legit.ng, Alaje hailed President Tinubu for the hundred per cent increase in education compared to the previous budget in 2023.
He also commended the President for the monies allotted to the student loan scheme, stating that it was a good start.
Alaje said:
"I think N50 billion is a good start, and I commend Mr President for that. And I also would like to mention that government should also try to have grants.
"Because getting a job is not automatic. They should also try to have grants for those who might not want to get loans directly."
Increase in education budget
However, Alaje said the increase in the education budget still did not meet UNESCO standards, and the increase was because Nigeria is now budgeting more due to the current economic reality of the country.
Alaje said:
"I clearly notice over a hundred per cent increase in education, that is commendable. But when you compare it to what is required by UNESCO, it's still very abysmally low.
"The overall budget itself has increased sporadically, and that is not because we are now budgeting more.
"In the real sense, we are still budgeting the same way in dollar terms. So because of the devaluation of Naira, you could see the overall effect in our entire economic cycle, including our budget cycle.
"It's so huge, but very meagre amount that is voted to education."
Since 2015, UNESCO Member States have endorsed a target for educational funding, suggesting it should range from 4 to 6% of GDP or 15 to 20% of public expenditure.
However, the majority of countries have yet to meet this specified benchmark. Additionally, it is observed that low-income nations allocate merely 1% of their post-COVID-19 stimulus packages to education, while wealthier countries dedicate only 2.9% of these packages to educational initiatives.
Tinubu’s 2024 budget, deceitful, strangulating' - PDP
Meanwhile, the PDP has described President Bola Ahmed Tinubu’s proposed N27.5 trillion budget for the 2024 fiscal year as hopeless and a huge disservice.
PDP noted that if the proposed budget is passed, it will further asphyxiate Nigerians and plunge the nation into more economic depression and hopelessness.
President Tinubu, on Wednesday, November 29, presented the N27.5 trillion 2024 budget proposal to a joint session of the 10th national assembly in Abuja — his first since assuming office in May.
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Source: Legit.ng
