FG GREENLIGHTS ₦40BN ZERO-INTEREST LOAN SCHEME FOR TERTIARY INSTITUTION STAFF

By: Abdul-Qoyyum Adeshola, Badmus.

Date: Monday, 2nd February, 2026 (14th Sha'ban, 1447 AH).

THE Federal Government has approved the disbursement of ₦40 billion in interest-free loans targeted at academic and non-academic staff working in Nigeria’s public tertiary institutions.

President Bola Ahmed Tinubu announced the decision during the 45th convocation ceremony of Ahmadu Bello University (ABU), Zaria, where he reaffirmed his administration’s resolve to improve staff welfare while safeguarding uninterrupted academic activities.

Represented by the Minister of State for Education, Prof. Suwaiba Said Ahmad, the President said the loan package is part of a broader Staff Loan Scheme introduced to cushion financial pressures faced by institution workers and allow them to focus more on teaching, research and service to society.

The scheme, according to him, is being implemented through the Bank of Industry (BoI), with the Federal Government fully absorbing the interest burden to ensure beneficiaries access the loans at no cost.

He disclosed that several staff members have already benefited from the initiative since its rollout last year, while ₦40 billion has been allocated for further disbursement in 2026. Eligible applicants are expected to receive loans ranging between ₦1 million and ₦10 million.

Repayment, the President explained, has been structured over five years, with an initial one-year moratorium designed to ease financial pressure on beneficiaries.

Tinubu stressed that a stable academic calendar remains central to the growth of the nation’s tertiary education system, assuring that his administration would continue to prevent avoidable disruptions in universities and other higher institutions.

He commended the Tertiary Institutions Expanded Negotiation Committee, chaired by Alhaji Mahmud Yayale Ahmed, for its role in resolving key issues with the Academic Staff Union of Universities (ASUU), while assuring that engagements with other unions are ongoing.

The President also praised Ahmadu Bello University for its strides in academics, research and community engagement, urging the institution to sustain transparency and accountability in line with the Federal Government’s Tertiary Institutions Governance and Transparency Programme.

On infrastructure, Tinubu acknowledged ABU’s efforts in cutting energy costs and confirmed that the university would benefit from Phase IV of the Energising Education Programme, which provides round-the-clock electricity to federal tertiary institutions.

He added that earlier phases of the programme have delivered over 100 megawatts of clean power to 24 federal universities and teaching hospitals nationwide.

Addressing graduating students, the President encouraged innovation and self-reliance, highlighting the Students’ Innovation Venture Capital Grant, which offers up to ₦50 million in seed funding for student-led ventures without equity conditions.

He also referenced the National Implementation Guidelines on Drug and Substance Use in Nigerian Institutions, describing it as a key policy aimed at curbing drug abuse on campuses through awareness, curriculum adjustments and collaboration with the National Drug Law Enforcement Agency.