Sterling Bank has solved the problem of investing for value in Nigeria’s education sector through its N15million Education loans package.
The financial services provider shared insights on practical and scalable solutions at a media roundtable event held in Lagos to discuss the topic around creating value that attracts large scale investments in Nigeria’s education sector.
While speaking at the conference, the divisional head for Growth at Sterling Bank, Obinna Ukachukwu, asserts that, to invest rightly in the education sector, one must ensure that the productivity output of skilled labour coming out of the specific education programme being invested in, must exceed the funding input over a period of time.
According to Ukachukwu, “the moment you
begin to underfund a sector that is supposed to drive skill acquisition that impacts economic productivity and development, the outcome of that underfunding will be sub-optimal skill development and as a result, one would create a productivity deficit that will ripple across every other sector,”
He, however,stated that, “if you want to guarantee the future of a community and nation at large, you have to educate your population in courses that lead to specific acquisition of skills that drive productivity and that are geared to endeavors that solve actual problems in the society, and not just the issuance of certificates.
“If you want education to work, you need to approach it in a way that ensures the education pays for itself. This is what the top institutions in the world’s top economies are doing – graduates of these institutions are creating value far greater than the systems that have produced them, and it is from the value created that endowments are created to fund the institutions and systems. The focus should be on the outcome of education beyond graduates and certificates, but economic output.”
He confirmed that Sterling has arguably the largest lending portfolio to students in Nigeria, with financing in excess of N15 billion to the education value chain, anchored with a novel student loan propositions and training, to upskill educators to ensure that as many of the needs of the industry are met across board.
Ukachukwu affirms that Sterling’s model has been to focus innovation, partnerships, and investments in projects that generate sustainable value for the educated individual, the community and the nation. Speaking specifically, he mentioned Sterling’s ongoing partnership with Decagon which has successfully financed the training of over six hundred market-ready software engineers in less than twenty four months.
He emphasised that Sterling has been actively
developing solutions and creating partnerships that bridge the funding gap for students and educators, while ensuring that the output of these programs are ready to be absorbed by companies sourcing talent with skills that are in demand in industry, and will translate into the creation of value for the business and the individual.
