The Nigerian Education Loan Fund (NELFUND) says it has disbursed more than ₦303 billion in student loans to about 850,000 Nigerian students within two years, providing financial support to thousands of beneficiaries across public tertiary institutions.
The disclosure was made by the Managing Director and Chief Executive Officer of NELFUND, Mr. Akintunde Sawyerr, during an interview with Vanguard on Wednesday.
According to Sawyerr, the scheme has recorded over 1.5 million loan disbursements, with many beneficiaries receiving payments for both institutional fees and monthly upkeep allowances.
He explained that the programme, created under the Nigerian Education Loan Fund Act, signed into law by President Bola Ahmed Tinubu on April 4, 2024, and officially launched on May 24, 2024, has eased the financial burden on students and their families.
NELFUND has so far paid institutional fees to 315 public tertiary institutions, including federal and state universities, polytechnics and colleges of education, while eligible students also receive a monthly upkeep allowance of ₦20,000.
“Within about 25 to 26 months, we have disbursed over ₦303 billion to Nigerians who genuinely need educational support. The bulk of the money has gone towards institutional fees, while we have also been paying monthly upkeep to students,” Sawyerr said.
He noted that the initiative has helped many students remain in school despite financial challenges.
“Students who previously struggled to pay for their education can now study without bearing the financial burden alone. Parents have also been relieved of significant financial pressure,” he added.
Sawyerr revealed that the programme has reached about 80 per cent of eligible public tertiary institutions, explaining that loan disbursement depends on applications submitted by qualified students.
According to him, limited awareness in some schools and delays in providing student records for verification have slowed implementation in certain institutions.
“We don’t simply pay institutions. We only pay where eligible students apply. Some institutions have also not provided the student data required for us to verify applications,” he explained.
Addressing complaints that some institutions have yet to refund students who paid their school fees before NELFUND made payments, Sawyerr said affected schools are expected to refund such students.
He added that while some institutions have complied, others are still processing refunds due to administrative procedures.
“We continue reminding institutions of their obligation. Agencies such as the ICPC and EFCC, alongside student unions, are also assisting to ensure compliance. However, NELFUND has no legal powers to sanction institutions,” he said.
The NELFUND boss also dismissed claims that the student loan scheme has contributed to rising tuition fees, insisting that fee increases in many institutions began before the programme was introduced.
“If NELFUND were scrapped today, the hardship would certainly be much worse,” Sawyerr stated.
He further clarified that the scheme currently applies only to students in public tertiary institutions, noting that extending it to private institutions would require amendments to the existing law.
On repayment, Sawyerr explained that beneficiaries will begin repaying their loans two years after completing the National Youth Service Corps (NYSC).
He said employers will be required to verify workers’ loan status through a database linked to the National Identification Number (NIN), deduct 10 per cent of the salaries of indebted beneficiaries and remit the funds to NELFUND.
He warned that employers who fail to comply with the repayment provisions could face penalties under the NELFUND Act.
Sawyerr described NELFUND as one of the Federal Government’s best-performing agencies and pledged that the organisation would continue expanding access to education financing across Nigeria.
