The Nigerian Education Loan Fund (NELFUND) has revealed that demand for student loans has been ‘overwhelming’, as more Nigerian students seek financial support to continue their education.
The Managing Director and Chief Executive Officer of NELFUND, Akintunde Sawyerr, disclosed this during an interview on Channels Television’s Sunday Politics programme.
Sawyerr said the student loan scheme had become an important source of financial relief for students who might otherwise struggle to remain in tertiary institutions.
“The demand has been overwhelming, because clearly a lot of people have struggled to get into these institutions,” he said. “They are hanging on by the skin of their teeth to stay in the institution, and this programme came as a rescue for them.”
According to Sawyerr, NELFUND is currently assessing the growing demand and analysing disbursement figures to gain a clearer understanding of the financial requirements of the programme.
NELFUND Disburses N162bn in Student Upkeep Allowances
Sawyerr disclosed that NELFUND has so far disbursed ₦162 billion in upkeep allowances to students as the government-backed loan programme continues to expand across public tertiary institutions.
He explained that the scheme was also beginning to influence competition among higher institutions, as students now have greater financial flexibility when deciding where to pursue their studies.
The NELFUND boss also rejected allegations that the fund favours children of members of the All Progressives Congress (APC).
He described the claim as “completely ridiculous”, insisting that the programme operates “without bias” and does not consider political affiliation when selecting beneficiaries.
According to him, students are assessed based on established eligibility criteria rather than their political connections or backgrounds.
How NELFUND Determines Eligibility
Speaking about how the fund identifies students who may be unable to afford their fees, Sawyerr said NELFUND relies on available information and established procedures to determine who qualifies for financial assistance.
He also referenced research suggesting that the programme has helped reduce student dropout rates.
According to Sawyerr, the scheme has “reduced by 20 per cent” the rate at which students leave tertiary institutions because of financial difficulties.
NELFUND Explains Student Loan Repayment
On repayment of the loans, Sawyerr said beneficiaries should not view the process as an excessive financial burden.
He explained that the repayment structure was designed around beneficiaries’ ability to repay after completing their education.
He added that beneficiaries would become increasingly traceable as the repayment system becomes more developed.
The NELFUND chief executive also addressed President Bola Tinubu’s announcement that funds recovered by the Economic and Financial Crimes Commission (EFCC) would be used to support the student loan programme.
Sawyerr clarified that the recovered funds had not yet been transferred to NELFUND.
How Nigeria’s Student Loan Scheme Works
The student loan programme was established under the Student Loans Act, which was signed into law by President Tinubu in April 2024.
The scheme provides interest-free financial assistance to eligible Nigerian students enrolled in public tertiary institutions.
It covers approved institutional charges and upkeep allowances, with repayment expected to begin two years after beneficiaries complete the National Youth Service Corps (NYSC) programme.
NELFUND says the programme is intended to reduce financial barriers to tertiary education and help more students complete their studies without being forced to drop out because of a lack of funds.
