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Students in Technical Colleges to Receive N45,000 Monthly Under New TVET Plan

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The Federal Government has unveiled a landmark intervention to revitalise Technical and Vocational Education and Training (TVET) in Nigeria with the introduction of a N45,000 monthly stipend for students enrolled in accredited technical colleges across the country.

The new policy, announced in Abuja by the Executive Secretary of the National Board for Technical Education (NBTE), Idris Bugaje, forms part of a broader framework to reposition TVET as a credible and attractive alternative to conventional academic pathways.

The announcement coincided with the second-year administration review of President Bola Tinubuโ€™s tenure.

According to Bugaje, the stipend is not a loan but a non-repayable grant, aimed at expanding enrolment in sub-tertiary technical institutions and incentivising young Nigerians to acquire marketable skills for the domestic and international labour markets.

โ€œThe N45,000 is not a loan but a grant. Students who benefit from it are not expected to pay back. This is a deliberate strategy to encourage more young Nigerians to enrol in technical colleges, acquire skills qualifications, and enter the workforce with relevant expertise,โ€ Bugaje stated.

In addition to the monthly stipend, the federal government has approved funding to cover tuition fees, industry-based supervision through โ€œmaster classโ€ instructors, and the cost of skill certification for each student. These components are designed to align technical training with labour market demands and ensure that students graduate with globally recognised competencies.

To fund the initiative, the government has earmarked N120 billion, to be disbursed through the Nigerian Education Loan Fund (NELFUND), marking a major policy shift from loan-based financing to direct support for skill acquisition programmes.

Bugaje emphasised that the current push represents a โ€œresurrection or rebirthโ€ of the TVET sector, which has experienced decades of neglect.

He noted that Nigeria currently has only 129 functional technical colleges, a stark contrast to over 15,000 senior secondary schools nationwide.

โ€œWe are reversing the downward trend that began in the 1980s. This initiative will breathe new life into technical education, a sector that was once thriving during the colonial and early post-independence eras,โ€ he added.

As part of the long-term sustainability framework, the Minister of Education is championing a legislative bill for the establishment of a National Skills Fund under the proposed Nigerian Skills Qualification Framework (NSQF). The bill, expected to be presented to the National Assembly in the near term, will provide a legal structure for continued funding of both public and private TVET institutions.

โ€œThis was an idea long overdue. The current minister has now taken it up and is driving the legislative process to create the Nigerian Skills Qualification Framework and the National Skills Fund,โ€ Bugaje confirmed.

Policy Implications

Analysts view the initiative as a significant policy shift aimed at bridging the countryโ€™s widening skills gap and enhancing workforce readiness.

With youth unemployment hovering around double digits and a large informal economy, the introduction of financial incentives for technical education is expected to bolster interest in hands-on professions and reduce over-reliance on traditional university degrees.

Furthermore, the proposed National Skills Fund, if passed, could standardise funding for vocational institutions, ensure quality control and enable scalability of skill-based education across states and private sectors.

The governmentโ€™s latest TVET plan aligns with President Tinubuโ€™s broader economic agenda to drive productivity, reduce unemployment and promote inclusive growth through human capital development.

Stakeholders across the education and labour sectors have welcomed the policy, describing it as a long-overdue corrective measure to reposition Nigeriaโ€™s technical education system in line with global standards.

is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst with over 20 years of experience in global financial markets. Olukoya is a published contributor to Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, InvestorPlace, and other leading financial platforms. He is widely recognized for his in-depth market analysis, macroeconomic insights, and commitment to financial literacy across emerging economies.

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