The Nigerian Education Loan Fund (NELFUND) has provided loans totaling N11 billion to support 90,000 students across the country within the past six months, according to the agency’s Managing Director, Dr. Akintunde Sawyerr. Speaking during an oversight visit by the Senate Committee on Tertiary Institutions and TETFUND, chaired by Senator Muntari Dandutse, Dr. Sawyerr provided an update on the disbursement and qualifications process for the fund, established under President Bola Tinubu’s Renewed Hope mandate.
The agency has earmarked a total of N96 billion for student loans, with N11 billion already disbursed. According to Dr. Sawyerr, the rigorous application process ensures funds are awarded only to those who meet strict eligibility criteria, preventing misuse of the loan. Although over 300,000 students initially qualified, funding has been provided to 90,000 students after in-depth reviews.
Dr. Sawyerr explained that the loans are divided into two types: the Institutional Loan, which covers education fees, and the Upkeep Loan, designed to assist with living expenses. Only students who qualify for and receive the Institutional Loan are eligible for the Upkeep Loan, which is intended to support them while they are in school. “Upkeep is tied to going to school,” he noted, clarifying that students cannot apply solely for the upkeep fund.
In terms of disbursement across Nigeria’s regions, students from the North-west have received the highest percentage of loans at 38%, followed by the North-east with 26%, North-central with 12%, South-west with 13%, South-east with 10%, and South-south with 4%. The agency has committed to tracking these distributions monthly to maintain a balanced allocation.
The repayment terms are structured to ease the financial burden on graduates, Dr. Sawyerr noted, emphasizing that NELFUND is not profit-driven. Loan repayment begins two years after students complete their mandatory National Youth Service Corps (NYSC) program and secure employment, with deductions made directly from their salaries by employers.
“This initiative is about building the nation, not making a profit. We’ve structured it so that repayment terms won’t discourage students from pursuing education,” Sawyerr said. The programme reflects the administration’s commitment to increasing access to education and easing the financial burden on students, especially those from lower-income backgrounds.
