NELFUND: Student loan demand overwhelming, N162bn disbursed in upkeep allowances

The Managing Director and Chief Executive Officer of the Nigerian Education Loan Fund (NELFUND), Akintunde Sawyerr, says demand for student loans has been overwhelming. He spoke on national television and described the scheme as a lifeline for students who would otherwise struggle to finance their education.

Sawyerr said: “The demand has been overwhelming, because clearly a lot of people have struggled to get into these institutions. They are hanging on by the skin of their teeth to stay in the institution, and this programme came as a rescue for them.”

Why the fund is not only for poor students

Sawyerr explained why the scheme has not been restricted to Nigerians classified as poor or indigent. He said parental wealth should not determine a young person’s access to educational support.

“You need to start treating Nigerian youths as adults. The fact that they come from a wealthy family, or maybe stand to benefit from a big inheritance, does not preclude them from needing support,” he said.

According to him, the circumstances confronting students can be more complex than family background. He stressed that young Nigerians should be treated as adults capable of making decisions about their education and future.

Sawyerr also dismissed claims that the fund favours children of members of the All Progressives Congress (APC). He described the allegation as “completely ridiculous” and said the system was designed without bias, political affiliation or other considerations.

N162bn disbursed, dropout rates down 20 per cent

NELFUND has so far disbursed N162 billion in upkeep allowances to students, Sawyerr said. The government-backed scheme continues to expand its reach across public tertiary institutions.

He said NELFUND was analysing the growing demand and the figures around its disbursements to better understand the financial requirements of the scheme.

Sawyerr also cited research indicating that the scheme has contributed to a reduction in student dropout rates. He said it has “reduced by 20 per cent.”

He added that the programme was beginning to influence competition among tertiary institutions as students gained greater financial flexibility in choosing where to study.

Repayment and EFCC funds

On repayment, Sawyerr maintained that paying back the loans should not be an undue burden for beneficiaries. He said the system was structured around beneficiaries’ ability to repay, and beneficiaries would become increasingly traceable as the repayment system develops.

The NELFUND chief executive also spoke about President Bola Tinubu’s announcement on the use of funds recovered by the Economic and Financial Crimes Commission (EFCC) to support the student loan scheme. He said the funds had not yet been received by NELFUND.

The student loan scheme was established under the Student Loans Act signed into law by President Tinubu in April 2024. It provides interest-free financial support to eligible Nigerian students in public tertiary institutions, covering approved institutional charges and upkeep allowances. Repayment is scheduled to begin two years after completion of the National Youth Service Corps (NYSC) programme.

For Nigerian students and families, the scheme reduces the immediate burden of paying for tertiary education. But the delay in receiving EFCC-recovered funds means the next phase of the programme depends on when those inflows arrive.