A former member of the House of Representatives, Lanre Laoshe, has repaid a student loan he received over four decades ago with a sum that reflects its current value.
The Nigerian Education Loan Fund (NELFUND) announced on Tuesday, Laoshe, who benefited from the Federal Government Student Loan Scheme between 1976 and 1979, repaid the loan amount of N1,200 with a bank draft of N3,189,217.00.
Laoshe, who served as a Deputy Whip during his tenure in the House of Representatives, expressed deep appreciation for the financial support he received from the Federal Government during his educational journey.
The loan he received, which was a vital part of his education funding at the time, has now been repaid with an amount that accounts for inflation and currency devaluation over the years.
In his statement, Hon. Laoshe explained how he arrived at the repayment figure.
To determine the current equivalent of the N1,200 loan, he consulted historical exchange rates from the Central Bank of Nigeria (CBN).
According to the data, in 1979, the exchange rate was N0.596 to $1.00. At that rate, the N1,200 he borrowed was equivalent to $2,013.42.
Using the current exchange rate of N1,583.98 to $1.00, Hon. Laoshe calculated that the equivalent amount today would be N3,189,217.00.
He subsequently issued a Polaris Bank Plc bank draft (No. 14670909) for this amount to NELFUND.
Announcing the development, NELFUND noted, “The act of goodwill and integrity by Hon. Laoshe serves as an inspiring example of the impact that government support can have on individuals and highlights the importance of honoring one’s commitments.”
The Federal Government Student Loan Scheme, from which Hon. Laoshe benefited, was established to provide financial assistance to Nigerian students pursuing higher education.
The scheme, which has since been replaced by other forms of educational funding, was a crucial lifeline for many students in the 1970s and 1980s.
During the period when Hon. Laoshe received his loan, the scheme offered financial support to students in various institutions of higher learning across the country.
The N1,200 loan he received between 1976 and 1979 was a substantial amount at the time, covering a significant portion of tuition and other educational expenses.
However, with the passage of time, the value of the Nigerian naira has depreciated significantly due to inflation and other economic factors.
What was once N1,200 in the late 1970s is now worth much more in today’s currency.
Hon. Laoshe’s repayment reflects not just the original loan amount but also the increased value of money over time.
