The Federal Government has expressed concern over the impact of the high exchange rate on the number of scholars trained by the Tertiary Education Trust Fund (TETFund).
Arc. Sonny Echono, the Executive Secretary of TETFund, made this lamentation during an oversight visit to the Fund by the House of Representatives Committee on TETFund and other Services in Abuja.
Echono revealed that the Fund has spent N3.8 billion on stranded Nigerian scholars abroad in recent years.
He explained that the increase in the exchange rate had caused challenges for scholars studying abroad. Stating, “We identify a cut-off point for those who will be eligible for the scholarship,” he said. However, due to delays in payment caused by the high exchange rate, many scholars from various countries, including the UK and Malaysia, cried out for assistance.
Echono praised the positive response from relevant authorities, including the President, for providing a bailout or assistance to address the issue.
In addition to the exchange rate challenges, Echono highlighted another issue affecting the disbursement of funds to scholars. Stating that in the past, funds were sent directly to institutions, who were then responsible for redistributing the money to students. However, this process faced delays and inefficiencies.
“To address this, TETFund now pays the institutions directly, with funds transferred in bulk from the Central Bank of Nigeria.”
The Chairman of the oversight committee, Hon Mariam Onuoha, expressed concern over the high rate of unaccessed funds by beneficiary institutions.
She emphasized the need for effective implementation of legislation to ensure that interventions reach the intended recipients.
Despite the challenges faced, Echono highlighted some positive developments. He noted that Nigeria has improved its standing in research grants within Africa, moving from the 9th to the 7th position.
He also highlighted the rise in education tax collection, which increased from N257 billion in 2020 to N725 billion in 2023.
Gom Mirian- Report
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