The Federal Government has defended the newly introduced Tertiary Institutions Staff Support Fund (TISSF) following its rejection by the Academic Staff Union of Universities (ASUU), insisting that the scheme is aimed at improving the welfare and productivity of academic and non-academic staff across Nigeria’s tertiary institutions.

ASUU had earlier described the TISSF as a “debt trap,” urging the government to instead channel the funds towards settling withheld salaries and signing the re-negotiated agreement with the union.

However, Minister of Education, Dr Tunji Alausa, said the initiative was conceived as part of the administration’s broader effort to strengthen staff welfare, institutional efficiency, and innovation.

Speaking at the Federal University of Technology, Akure (FUTA), Ondo State, during the ceremonial disbursement of cheques and letters of approval to beneficiaries, Alausa said the fund represents a complementary measure rather than a substitute for other welfare commitments.

“I want to be clear with our academic union. Some ASUU members said, ‘Oh, don’t give us TISSF; that’s not what we want.’ No. This is support — a layer of support in addition to other welfare initiatives we are pursuing to improve the condition of our tertiary institution staff,” he stated.

According to the Minister, over 9,000 staff members have benefited in the first phase of the interest-free loan scheme, representing 28 per cent of 33,000 verified applicants drawn from 219 federal and state tertiary institutions.

He explained that the ₦10 million zero-interest loan, approved by President Bola Ahmed Tinubu, is repayable over five to seven years, with a 24-month moratorium before repayment begins.

“This money can be used for housing, transportation, healthcare, tuition, or even small business ventures. It’s a flexible support system to help staff improve their standard of living,” Alausa added.

He further disclosed that the disbursement covered both academic and non-academic staff in a 30:70 ratio, reflecting the government’s inclusive approach.

Minister of State for Education, Prof. Suwaiba Said Ahmed, described the TISSF as a “visionary initiative” that demonstrates the government’s commitment to strengthening the nation’s tertiary education system.

“Without motivated staff, learning becomes difficult. Lecturers, researchers, technologists, and administrators are the backbone of our institutions. Let’s make TISSF a sustainable and impactful mechanism that truly uplifts them,” she said.

Prof. Ahmed also commended the Bank of Industry and other partners for their collaboration in designing and supporting the fund, assuring that transparency and accountability would be maintained in its management.

In her remarks, the Vice Chancellor of FUTA, Prof. Adenike Temidayo Oladiji, described the visit of both ministers as “historic,” noting that it marked the first time two serving education ministers visited the institution simultaneously.

She commended Alausa for key policy reforms benefiting universities, including the separation of research accounts from the Treasury Single Account (TSA) and improved access to TETFund grants.

The Vice Chancellor, however, appealed for sustained peace and stability in universities, emphasising that prolonged strikes disrupt academic calendars and negatively affect students.

“We hope the government will continue to engage stakeholders to ensure uninterrupted learning,” she said.