Tertiary Loan Scheme Insult to Our Sensibilities, Says ASUU

ASUU rejects the Federal Government’s tertiary loan scheme, describing it as an insult to university workers and a mockery of Nigeria’s education system.

ASUU Rejects Federal Government’s Tertiary Institution Loan Scheme

The Academic Staff Union of Universities (ASUU) has strongly rejected the recently launched Tertiary Institution Loan Scheme introduced by the Federal Government. According to the union, the initiative is an “insult to the sensibilities of tertiary workers” and a clear mockery of Nigeria’s struggling university system.

The scheme, introduced by the Ministry of Education, promises interest-free loans of up to ₦10 million for university staff, with a one-year moratorium and a five-year repayment plan. It is aimed at promoting financial stability, professional development, and staff welfare across tertiary institutions.

However, ASUU insists the move is nothing more than a distraction from government’s failure to address long-standing issues such as salary arrears, outdated wage structures, and unimplemented agreements.

ASUU’s Response to the Loan Initiative

Speaking at a press conference in Uyo, the Zonal Coordinator of ASUU, Calabar Zone, Mr. Ikechuku Igwenyi, criticized the loan offer, describing it as “slavish and impossible in a depressed economy.”

The Calabar Zone of ASUU represents eight institutions, including:

University of Calabar
University of Uyo
Ebonyi State University
Abia State University
Cross River State University
Alex Ekweme Federal University, Ndufu-Alike
University of Education and Entrepreneurship, Akamkpa
Other affiliated institutions in the zone

Igwenyi questioned why the government, which still operates on a 17-year-old salary structure, has failed to renegotiate lecturers’ pay since 2012, yet is quick to propose loans as a supposed solution.

Unresolved Issues Raised by ASUU

The union highlighted several pressing concerns, accusing the Federal Government of engaging in “duplicity and delay tactics.” Among the key grievances are:

Non-renegotiation of the 2009 ASUU-FGN Agreement despite repeated committees and reports.
Non-payment of third-party salary deductions for nearly a year.
Failure to pay promotion arrears owed to lecturers.
Introduction of policies such as IPPIS, NELFUND, and loan schemes that undermine collective bargaining principles.
Attempts to impose unions as guarantors of the loan, a role ASUU rejects outright.

According to ASUU, rather than providing sustainable solutions, the government continues to divert attention with schemes that do not address the root causes of poor welfare in Nigerian universities.

ASUU Labels Loan Scheme a “Poison Chalice”

Igwenyi described the loan as a “poison chalice”, arguing that no responsible government should expect poorly paid workers to rely on loans for basic living expenses. He further asked critical questions:

Which salary structure will be used to repay these loans?
Why not channel the same funds into paying arrears and improving wages?
How can unions be imposed as guarantors for loans they did not negotiate?

He added that no sensible worker would opt for a loan to meet feeding and domestic needs if adequately remunerated in the first place.

For a wider context on Nigeria’s economic and educational challenges, see the World Bank’s report on education in Sub-Saharan Africa at worldbank.org.

Upcoming Meeting with the Federal Government

ASUU also revealed that its August 28, 2025 meeting with the Federal Government could be its last, as the union is unwilling to keep spending resources on unproductive negotiations.

The union warned that unless the government implements agreements and improves staff welfare, it will resist attempts to tie lecturers and students to “slavish loan schemes” that do nothing to solve systemic problems.

The rejection of the Tertiary Institution Loan Scheme by ASUU underscores a widening gap between the Federal Government and Nigeria’s academic workforce. While the government presents the scheme as a solution for financial support, ASUU insists that fair salaries, arrears settlement, and genuine reforms are the only sustainable ways forward.

Until these issues are resolved, Nigeria’s education sector remains at risk of further crises, with both lecturers and students caught in the middle of policy failures.