The Nigerian Education Loan Fund (NELFUND) has announced that Lanre Laoshe, a former member of the House of Representatives, Hon. Lanre Laoshe, has repaid N3.18 million in student loan debt, 45 years after initially borrowing from the government.
The spokesperson of NELFUND, Nasir Ayitogo, said on Tuesday Laoshe who originally secured a credit facility of N1,200 in 1979 has now repaid the loan with interest, amounting to N3.18 million, to the Fund.
Ayitogo said that the former lawmaker expressed deep appreciation for the financial support he received from the Federal Government through the now-defunct Federal Government Student Loan Scheme during his educational journey.
According to him, Laoshe explained that to determine the current equivalent of the N1,200 loan, he consulted a table of average annual exchange rates from 1972 to 1985, obtained from sources at the Central Bank of Nigeria (CBN).
“The Nigerian Education Loan Fund (NELFUND) is pleased to announce that Hon. Lanre Laoshe, a former beneficiary of the Federal Government Student Loan Scheme, has graciously repaid his N1,200 student loan, received between 1976 and 1979, with the sum of N3,189,217.00.
“Hon. Laoshe, a distinguished former member of the House of Representatives and a former Deputy Whip, who benefited from the defunct Federal Government Student Loan Scheme expressed his deep appreciation for the financial support he received from the Federal Government during his educational pursuit.
“He stated that in order to determine the current equivalent of the N1,200 loan, he obtained a table of average annual exchange rates from 1972 to 1985 from sources at the Central Bank of Nigeria (CBN),” the statement read in part.
Exchange Rate Difference
In addition, Ayitogo mentioned that the lawmaker used the difference between the exchange rate in 1979 and that of 2024 to determine the exact amount owed to the federal government.
He further explained that the lawmaker issued a Polaris Bank Plc bank draft (No. 14670909) for this amount to NELFUND, marking his repayment as a token of gratitude to the Federal Government for the role it played in his educational journey.
“The table indicated that in 1979, the exchange rate was $1.00 = N0.596, meaning that the sum of N1,200.00 was equivalent to $2,013.42 at the time.
“Using the current exchange rate of $1.00 = N1,583.98, Hon. Laoshe calculated that the equivalent amount today would be N3,189,217.00.
“As a result, he issued a Polaris Bank Plc bank draft (No. 14670909) for this amount to NELFUND, marking his repayment as a token of gratitude to the Federal Government for the role it played in his educational journey,” the statement added.
What you should know
The revised Student Loan Act of 2024 was established to ensure that education becomes more accessible to all Nigerian students, irrespective of their financial circumstances.
This legislation is designed to eliminate the financial obstacles that often hinder students from pursuing higher education.
The Act mandates that NELFUND will be financed through multiple channels, including a small percentage of taxes and duties collected by key government agencies such as the Federal Inland Revenue Service, the Nigerian Immigration Service, and the Nigerian Customs Service.
Furthermore, the fund will benefit from profits derived from the government’s natural resource activities, the issuance of education bonds, and contributions from individuals and organizations.
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