In its first two years of operation, the Nigerian Education Loan Fund (NELFUND) has provided over N303 billion in financial assistance to approximately 850,000 students. This initiative serves as a primary method for the Federal Government to improve access to higher education.
Managing Director Akintunde Sawyerr noted that the organization has processed over 1.5 million individual payments, covering both school fees and monthly stipends. Established following the enactment of the Nigerian Education Loan Fund Act by President Bola Ahmed Tinubu, the program has successfully reached 80 percent of eligible public institutions, including universities, polytechnics, and colleges of education. Students receive a monthly stipend of N20,000 to assist with living expenses.
Sawyerr addressed challenges regarding institutional compliance, noting that some schools have been slow to submit necessary student data for verification. While some institutions have failed to refund students who paid fees prior to loan approval, Sawyerr emphasized that schools are legally required to issue these refunds, with oversight bodies like the ICPC and EFCC monitoring the situation.
Addressing criticism regarding tuition hikes, the NELFUND head clarified that fee increases occurred before the fund’s existence and suggested that the program currently prevents greater financial strain on families. Participation remains restricted to public institutions due to existing legislation, meaning private school students are currently ineligible.
Repayments are set to begin two years after a beneficiary completes their National Youth Service Corps (NYSC) term. Once active, the process will involve employers deducting 10 percent from the salaries of beneficiaries, tracked through the National Identification Number (NIN) database. Failure to comply with these regulations will result in penalties for employers as outlined by law.
