Why ASUU Rejects The Recent Loan by the Federal Government

Why ASUU Rejects the Newly Launched Federal Government Loans

By Sikiru Obarayes

The Academic Staff Union of Universities (ASUU) has rejected a new loan scheme for tertiary institution workers launched by the Federal Government, labeling it a “poisoned chalice.”

The union, through its National President, Prof. Christopher Piwuna, urged its members to stay away from the initiative, insisting that the government should instead implement the long-standing 2009 agreement.

Speaking at a press conference in Jos on Thursday, August 21, 2025 Prof. Piwuna criticized the Tertiary Institutions Staff Support Fund, which was unveiled by the Minister of Education, Dr. Tunji Alausa.

While the government presented the fund as a welfare and empowerment initiative, ASUU argued that it offers little value, as its members are already “deep in debt from such loans.”
The union stated that its primary demand is for the government to sign and implement the renegotiated agreement, which would improve the purchasing power of its members and reduce their reliance on debt.

The key issues in the 2009 agreement include improved conditions of service, university autonomy, academic freedom, adequate funding for universities, and a review of laws governing the Joint Admissions and Matriculation Board (JAMB) and the National Universities Commission (NUC).

Prof. Piwuna accused the government of delaying the renegotiation process despite the submission of the Alhaji Yayale Ahmed Report in February 2025. He also questioned the government’s priorities, noting that the union’s members are still owed three and a half months’ salaries. He called on the government to use the money designated for the loans to pay the withheld salaries instead.

ASUU warned that it is prepared to embark on a strike if its demands are not met. The union has planned a nationwide rally on campuses next week as a “first shot” to draw attention to its grievances.

While acknowledging a planned meeting with the government on August 28, Piwuna stated that the union’s National Executive Committee would be “decisive on the outcome of the meeting.”
“Trust has been destroyed by government,” Piwuna said. “It is, therefore, up to them to regain it to avert any strike.”