Why Universities Are Increasing Fees – Ministry Of Education

Why Universities Are Increasing Fees – Ministry Of Education

The Federal Ministry of Education has clarified that the recent fee increases in some federal government-owned universities are not linked to the Student Loans Act.

According to the ministry, these institutions raised their fees to cover expenses related to accommodation and utilities.

Andrew Adejo, the Permanent Secretary of the ministry, provided this information during his appearance before a House of Representatives ad hoc committee focused on the implementation of the student loan law.

Several federal government-run universities have recently raised their tuition fees, while others have indicated their intentions to do so.

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Mr. Adejo explained that due to the dissolution of the governing councils of these institutions, the ministry had been responsible for approving fee hikes in the absence of those councils. He clarified that the University of Lagos was the only institution that received approval for a fee increase after the signing of the Student Loans Act. However, subsequent resolutions from the House and a directive from President Bola Tinubu halted any further fee increases.

Adejo emphasized that the charges collected by universities were aimed at covering expenses such as accommodation, ICT services, and power. He highlighted that the power to approve such charges lies with the governing councils of the universities.

To illustrate the financial challenges faced by some institutions, Adejo cited the example of Ahmadu Bello University in Zaria, where the ministry had to assist in settling its N1 billion electricity debt.

While the federal government maintains that its universities are tuition-free, universities’ management has justified fee increases by referring to these charges. Universities such as the University of Benin, University of Abuja, and University of Maiduguri had previously raised their fees this year.

In June, President Tinubu signed the Student Loans Act, which establishes the Education Loan Fund to provide interest-free loans to financially disadvantaged Nigerians for higher education.

The act is part of President Tinubu’s education reforms outlined in his ‘Renewed Hope’ manifesto.

The Committee Chairman, Teseer Ugbor, expressed reservations about the Student Loan Act, suggesting that the statutory provision of one percent of government revenue might not be adequate to fund the scheme.

He proposed that the House consider amendments to increase the allocation to three percent.