Financial Institutions Call for Private Education Fund

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Financial Institutions Call for Private Education Fund

By Correspondent

First Bank of Nigeria (FBN), Sterling Bank, Accion Microfinance Bank, and other financial institutions have requested that an education trust fund that would cater to financial needs of private schools be established. Their intention was made known during a panel discussion organised by Developing Private Education Nigeria (DEEPEN) held at the Virgin Rose Hotel, Victoria Island, Lagos last Thursday. Funded by the Department for International Development (DFID), United Kingdom, DEEPEN is a programme that focuses on improving private education, particularly low-cost private education. DEEPEN has conducted research which shows that private schools cater to 25 percent of Nigeria’s pupils and 57 per cent in Lagos. DEEPEN’s stance is that private schools are as important in providing quality education as public schools and should enjoy the subsidy. Chioma Obi-Osuji, DEEPEN’s deputy team lead said that low-income private schools found it difficult to acquire loans to fund their schools due to rigorous approval terms by the Ministry of Education, adding that the high cost of land did not help matters. Mrs Obi-Osuji reiterated; “The major obstacle the schools have to cross is on land. The ministry says the schools have to own their own land to gain approval. But Lagos State is congested so acquiring land is not just difficult but expensive and these are schools that charge below N25,000. And the government has not budged on this rule.” The finance intervention lead at DEEPEN, Nadia Weigh shares her opinion; “It is a vicious cycle. There is a high chance of default in paying fees by parents in all the grades of schools. Now these schools are unapproved because they don’t have land. Land is expensive so they can’t get them. But the banks won’t give them loans because they aren’t approved.” Other stakeholders at the forum called for standards for approving the low-income schools to be cushioned based on the new grading system, which DEEPEN has piloted at Ojo Local Government Area of Lagos. Mrs Obi-Osuji further revealed; “The grading system has categorised 455 schools in Ojo such that schools with very limited facilities and management system are rated one-star; those with limited facilities are two-star; three-star schools have adequate facilities; four-star schools have very good facilities and management system; while five-star schools are comparable to national and international standards.” The financial institutions’ representatives all appealed to the government to establish a funding system for private schools, stating that the Tertiary Education Trust Fund (TETFund) and other fund mechanisms were directed at Public schools, without consideration for private schools, especially those that cater to low-income families.

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