The National Association of Proprietors of Private Schools has said the high interest on loans is unbearable.

Speaking to The PUNCH in an interview, the national president, NAPPS, Mr Yomi Otubela, advised the Federal Government to establish an Education Bank, saying it would help to push for a proposal at the Federal Executive Council for a concessionary interest loan to education institutions.

While speaking on the expectations of NAPPS from the new Minister for Education, Prof. Tahir Mamman, Otubela said, “We expect the minister to look into the issue of the establishment of the Education Bank by helping to push for a proposal to the Federal Executive Council for a concessionary interest loan to education institutions to alleviate the challenges of funding faced by private schools owners who are left with no choice but to obtain loans at high interest from commercial banks.

“The high interest on loans has become unbearable for school owners as private schools are not to be viewed as commercial ventures given the peculiarities of private education investments.”

He also complained about the issue of multiple taxations from the Federal Government and State Governments, adding that it should be examined for possible harmonisation.

Otubela said, “Critical meetings with the education stakeholders are imperative to keep the minister abreast of the challenges within the sector. This is necessary to proffer appropriate solutions to them.

“Policy formulation and implementation must take cognisance of the inputs of various education stakeholders. Periodic reviews of policies are needed to ensure that they are meeting and achieving their objectives as expected.”

Also speaking, the proprietor of Topdeal College, Ikorodu, Dr Oladeji Akinola, explained that the interest rate loan which was 18 per cent per annum for commercial banks and three to four per cent per month from Microfinance Banks was indeed excruciating and unaffordable for most school owners.

He said, “The last NAPPS day we had in Lagos was like two weeks ago and some banks came to mobilise us to take loans. Almost every one of us couldn’t apply for a loan because of the interest rate. The banks couldn’t convince us that day and we were over 300, I am very sure that those who applied were not up to 10.

“We are trying to manage our income so that we don’t die young.”

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