Exchange Rate: FG Spends N3.8bn on 1,500 Scholars Studying Abroad

• The Federal Government allocated N3.8 billion to support 1,500 Nigerian scholars abroad, aiming to alleviate the impact of currency fluctuations
• Sonny Echono, TETFund’s executive secretary, disclosed the bailout funds during an oversight visit, highlighting challenges scholars face due to exchange rates

The Federal Government has spent N3.8 billion on 1,500 Nigerian scholars abroad under the Tertiary Education Trust Fund (TETFund) academic training program. This funding aims to mitigate the impact of the current naira exchange rate.

Sonny Echono, the executive secretary of TETFund, disclosed this during an oversight visit by the House of Representatives Committee on Tertiary Education Trust Fund, led by Chairman Princess Miriam Onuoha, on Thursday in Abuja. He explained that the bailout funds varied depending on each scholar’s specific circumstances.

“We have supported 1,500 scholars with a total of N3.8 billion. We established a cut-off point to determine eligibility for the scholarship,” Echono stated.

Echono mentioned that the high exchange rate has posed challenges for TETFund-sponsored scholars, with many requesting additional funding. This issue has also led to a decrease in the number of beneficiaries in foreign institutions. He acknowledged past issues with the remittance process, noting that many institutions had expressed concerns over the payment system.

He further highlighted that the collection from education tax was N257 billion in 2020, declined to N185.5 billion in 2021, increased to N328.8 billion in 2022, and reached N725 billion in 2023.

Regarding foreign grants for cutting-edge research, Echono noted that Nigeria has improved its standing, moving from the 9th to the 7th position in Africa to attract the highest research grants, thanks to TETFund’s efforts.

Chairman Miriam Onuoha commended Echono for his meticulous execution of projects and interventions that were in line with TETFund’s mandate. She stated that the visit aimed to assess the agency’s performance in the 2021-2023 budgets and ensure that allocations are used effectively.