Inside Nexford University And Sterling Bank Plan To Assist Nigerian Students With Tuition Payments
Inside Nexford University and Sterling Bank's plan to assist Nigerian students with tuition payments
Over the years, Nigeria's educational system has deteriorated. As of 2019, the country is ranked 124th in the world for education and 25th in Africa, behind Zimbabwe, Ghana, Rwanda, Namibia, Botswana, and the Seychelles, which is ranked first.
As a result, 50% of secondary school graduates in Nigeria are unable to gain admission to local universities and other institutions of higher learning. This is primarily due to a lack of funding and their inability to scale their operations through the admissions process.
Even if they receive a tertiary education, they frequently lack the skills necessary for modern enterprise upon graduation and are thus largely unemployed.
As a result, employers in Nigeria, and indeed throughout emerging markets, are struggling to find qualified entry-level employees. As a result, they are compelled to invest in costly and time-consuming training. This is despite the country's high unemployment rate.
Another implication is Nigeria's spiraling human capital development score, which currently stands at 44 percent on the World Economic Forum's index. This is significantly less than the Sub-Saharan African average of 55%. It is more obvious than ever that something urgently needs to be done to rehabilitate the country's dwindling educational fortunes.
Nexford University, a Washington-based digital tertiary institution, has partnered with Sterling Bank to assist Nigerian students in overcoming the challenges associated with financing their own education and, of course, obtaining a qualitative education that will prepare them for work in the modern world.
The program, dubbed 'Fund Your Future,' is part of Nexford University's larger 'Learn to Earn' initiative for emerging markets, according to Nexford University Founder and CEO, Fadl Al Tarzi. He stated that the program's objective is to address three major issues confronting both students and employers of labor. The first issue is assisting employers in identifying qualified entry-level talent.
The second challenge is to assist students in obtaining the necessary financial resources for a quality education. The final challenge is to equip students with the skills necessary to obtain employment following graduation, whether as entry-level employees or professionals.
The program's operation
According to the CEO, the program's entire process is designed to be simple and rapid. He stated that applications are submitted entirely online and that applicants can anticipate a decision/response almost immediately.
While no collateral will be required for loans, he stated that they will come with interest rates. According to the website, the interest rate is 5% and the maximum loan amount is N800,000. Apart from the loan, the CEO stated that a significant benefit will be a tuition fee discount for loan applicants:
No collateral is required. Yes, there is interest, but there is also a discount on tuition fees. Additionally, the foreign exchange rate is locked, allowing learners to lock in a rate when they obtain the loan, thereby mitigating their risk of further currency devaluation.
According to the CEO, this will protect students from fluctuating Naira exchange rates. These fluctuations, combined with restrictions on the use of the US dollar, present significant challenges for Nigerians studying abroad, as they make budgeting for degree costs difficult.
Given that Nexford prides itself on developing established business leaders into better professionals, it's surprising that it's suddenly narrowing its focus to high school graduates who have never attended an institution of higher learning.
When asked if this is a new strategy, Al Tarzi stated that it is, as the online university begins to shift its emphasis toward building larger pipelines of qualified entry-level talent.
“We are targeting high school graduates and providing them with the opportunity to earn a high-quality but affordable education without the risks and distractions associated with university strikes, or with safety concerns, for example. Simultaneously, by studying at Nexford, they gain the opportunity to begin gaining work experience prior to graduation,” he explained.
In addition, he stated that Nexford is looking for students who possess the prerequisite education necessary to succeed in its rigorous programs, which includes English proficiency. He noted that the AI-powered institution is not looking for top performers but rather for learners who can develop into future top performers.
