Nigeria’s President, Bola Tinubu plans to provide loans to tertiary students. This has raised debates. While a section of the population vetoes the idea, other prefer job creation to reduce the rising rate of unemployment in the country. NiBERNET analyzed European and American economies’ priorities for student loans and job creation, revealing mixed opinions on the idea.
In many countries, job creation is prioritized over student loans. This approach recognizes that creating opportunities for individuals to earn a living is the most effective way to help them achieve financial independence and repay any loans they may have taken out for their education. While student loans can help enable individuals to pursue higher education, prioritizing job creation can have a more significant impact on the long-term financial well-being of individuals and the economy as a whole.
One country that prioritizes job creation over student loans is Germany. In Germany, the government has implemented a dual education system that combines classroom learning with on-the-job training. This approach ensures that students gain practical skills and experience while they study, making them more employable after graduation. As a result, Germany has one of the lowest youth unemployment rates in Europe.
Another country that prioritizes job creation over student loans is Denmark. Denmark has a strong welfare system that provides citizens with access to education, healthcare, and other essential services. The government also places a high priority on supporting small businesses, which are responsible for creating the majority of jobs in the country. As a result, Denmark has one of the highest employment rates in the world.
In contrast, many countries prioritize student loans over job creation. In the United States, for example, the cost of higher education has risen significantly in recent years, leading to a student debt crisis. While student loans can provide individuals with the funds they need to pursue higher education, they can also leave them with significant debt burdens that can take years or even decades to repay. This can make it difficult for individuals to achieve financial independence and contribute to the economy by starting their businesses or investing in other ventures.
Therefore, prioritizing job creation over student loans can have a significant impact on the long-term financial well-being of individuals and the economy as a whole. Nigeria should emulate countries that prioritize job creation, such as Germany and Denmark, so that it can have lower unemployment rates and a strong economy. While student loans can help young people to pursue higher education, they should not achieve that at the expense of the goal of studying, employment and human satisfaction.
Nigeria governments should work to create policies that support small businesses and provide individuals with the skills and experience they need to succeed in the workforce. By doing so, they can help to create a more prosperous and equitable society for all.