The Nigerian Education Loan Fund (NELFUND) has described the demand for student loans as “overwhelming”, saying the scheme has become a crucial lifeline for students struggling to finance their education.
NELFUND Managing Director and Chief Executive Officer, Akintunde Sawyerr, made this known during an interview on Channels Television’s Sunday Politics programme.
According to Sawyerr, many students have struggled to gain admission and remain in tertiary institutions due to financial difficulties, making the loan scheme a major source of relief.
“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,” he said.
Sawyerr said NELFUND was analysing the rising demand for the loans, as well as its disbursement figures, to gain a clearer understanding of the financial requirements needed to sustain and expand the programme.
He disclosed that the fund had so far disbursed ₦162 billion in upkeep allowances to students, as the government-backed initiative continues to expand across public tertiary institutions.
The NELFUND chief executive also said the scheme was beginning to influence competition among tertiary institutions by giving students greater financial flexibility in deciding where to pursue their education.
Addressing allegations that the fund favours children of members of the All Progressives Congress (APC), Sawyerr dismissed the claims as “completely ridiculous”.
He stressed that the system was designed to operate without political or other forms of bias, adding that beneficiaries are selected based on established eligibility criteria.
On how NELFUND determines students who are unable to pay their fees, Sawyerr explained that the fund relies on available information and established processes to assess applicants and determine eligibility.
He further cited research suggesting that the student loan scheme had contributed to a reduction in dropout rates, putting the decline at 20 per cent.
On loan repayment, Sawyerr said beneficiaries should not find repayment excessively burdensome, noting that the system was designed around their ability to repay.
He added that beneficiaries would become increasingly traceable as the repayment framework develops.
Sawyerr also addressed President Bola Tinubu’s announcement concerning the use of funds recovered by the Economic and Financial Crimes Commission (EFCC) to support the student loan scheme.
According to him, the recovered funds had not yet been received by NELFUND.
The student loan scheme was established under the Student Loans Act, which was signed into law by President Tinubu in April 2024. It provides interest-free financial support to eligible Nigerian students enrolled in public tertiary institutions.
The scheme covers approved institutional charges and upkeep allowances, while repayment is scheduled to begin two years after beneficiaries complete the National Youth Service Corps (NYSC) programme.
