NELFUND disburses N303bn student loans to 850,000 beneficiaries in two years

By Joseph Erunke, Abuja

The Nigerian Education Loan Fund (NELFUND) has disbursed more than N303 billion to about 850,000 Nigerian students within two years of operation, marking one of the Federal Government’s major interventions in expanding access to tertiary education.

The Managing Director and Chief Executive Officer of NELFUND, Mr. Akintunde Sawyerr, disclosed this on Wednesday in an exclusive interview with Vanguard, saying the scheme had recorded over 1.5 million loan disbursements, with some beneficiaries receiving multiple payments for institutional fees and monthly upkeep allowances.

Sawyerr said the programme, established under the Nigerian Education Loan Fund Act signed into law by President Bola Ahmed Tinubu on April 4, 2024, and launched on May 24, 2024, had significantly reduced the financial burden on students and their families.

He explained that NELFUND had paid institutional fees to 315 tertiary institutions, including federal and state universities, polytechnics and colleges of education, while eligible students receive a monthly upkeep allowance of N20,000.

“Within about 25 to 26 months, we have disbursed over N303 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,” he said.

The NELFUND boss described the intervention as a major relief for students who previously faced financial difficulties that could have forced them to discontinue their studies.

“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, however, disclosed that the programme had so far reached about 80 per cent of eligible public tertiary institutions, noting that disbursement is based on applications from qualified students.

He attributed the remaining gap to limited awareness in some institutions and delays by some schools in providing student records required for verification.

“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 said.

On complaints that some institutions had failed to refund students who paid their fees before NELFUND disbursement, Sawyerr acknowledged that such cases existed but said affected institutions were obligated to refund the students.

He added that while some schools had complied, others were 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.

Addressing concerns that the loan scheme had contributed to rising tuition fees, Sawyerr dismissed the claim, saying fee increases in institutions predated the establishment of NELFUND.

He argued that the programme had instead helped protect many families from additional financial pressure.

“If NELFUND were scrapped today, the hardship would certainly be much worse,” he said.

Sawyerr also ruled out the inclusion of private tertiary institutions in the scheme for now, explaining that the current law limits participation to students in public institutions.

According to him, expanding the scheme would require legislative amendments and consideration of available resources.

On loan repayment, the NELFUND chief said beneficiaries would begin repayment two years after completing the National Youth Service Corps (NYSC), adding that no beneficiary had reached that stage because of the recent commencement of the programme.

He explained that employers would be required to verify employees’ 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 would face penalties provided under the NELFUND Act.

Sawyerr described NELFUND as one of the Federal Government’s major-performing agencies, assuring that the organisation would continue to improve its operations and expand access to education financing nationwide.

The post NELFUND disburses N303bn student loans to 850,000 beneficiaries in two years appeared first on Vanguard News.