Federal Government Begins Disbursement of Interest-Free Loans to Tertiary Institution Staff

The Federal Government on Wednesday commenced the rollout of interest-free loans to workers in universities, polytechnics, and colleges of education nationwide.

Introduced under the Tertiary Institution Staff Support Fund, the initiative aims to enhance the welfare of tertiary-institution staff. Speaking at the official launch at the Federal University of Technology, Akure (FUTA), the Minister of Education, Dr. Tunji Alausa, described the program as a key component of President Bola Tinubu’s Renewed Hope Agenda. He was joined by the Minister of State for Education, Prof. Suwaiba Ahmad.

Alausa revealed that over 30,000 academic and non-academic staff had applied for the loans, with roughly 9,000 applications approved so far. Non-academic staff account for 70 percent of beneficiaries, while academic staff make up 30 percent.

“We are not merely distributing loans; we are fulfilling a central promise of the Renewed Hope Agenda—to prioritise and improve the welfare of our educators, who form the bedrock of our future,” Alausa said.

He added that disbursement had already begun, with more than 400 applicants receiving payments in their bank accounts last week, and assured that all approved beneficiaries would receive their funds before year-end.

The zero-interest loans, capped at N10 million or 33.3 percent of an employee’s annual gross salary, are intended to support housing, healthcare, transportation, and small-business development. In the first phase, over 9,000 staff from 219 federal and state tertiary institutions are benefitting.

FUTA Vice-Chancellor, Prof. Adenike Oladiji, expressed gratitude to the Federal Government for including the university in its initiatives, including the $1 billion commercial aid program, while appealing for additional funding. She also urged the government to ensure universities remain open to reduce the administrative burden on vice-chancellors.

However, the Academic Staff Union of Universities (ASUU) has rejected the loan scheme, describing it as a potential ploy to exploit university workers. ASUU President, Prof. Chris Piwuna, had not provided a comment at the time of reporting.