The Nigerian Education Loan Fund (NELFUND) has disclosed that demand for student loans has been overwhelming, with thousands of Nigerian students turning to the government-backed scheme for financial support to remain in school.
NELFUND Managing Director and Chief Executive Officer, Akintunde Sawyerr, made this known during an interview on Channels Television’s Sunday Politics programme.
Sawyerr said the strong demand reflected the financial difficulties facing many students and families trying to meet the cost of tertiary education. The demand has been overwhelming, because clearly a lot of people have struggled to get into these institutions,” he said.
According to him, many students have been struggling to remain in school financially, making the student loan scheme an important source of relief.
They are hanging on by the skin of their teeth to stay in the institution, and this programme came as a rescue for them, Sawyerr added.
The NELFUND boss said the agency was currently analysing the increasing demand for student loans, as well as disbursement figures, to determine the financial requirements needed to sustain and expand the programme.
He disclosed that NELFUND had so far disbursed ₦162 billion in upkeep allowances to students under the scheme.
Sawyerr also noted that the programme was beginning to influence competition among tertiary institutions, as students receiving financial support now have greater flexibility in deciding where they want to study.
Sawyerr also dismissed allegations that NELFUND favours children of members of the All Progressives Congress (APC), describing the claim as “completely ridiculous.”
He said the student loan system was designed to operate without political bias or discrimination, stressing that beneficiaries are selected based on established eligibility criteria.
According to him, NELFUND uses available information and established processes to identify students who are unable to meet their educational expenses and determine those who qualify for assistance.
The NELFUND chief executive further disclosed that research had indicated a positive impact of the programme on student retention.
He said the scheme had contributed to a 20 per cent reduction in student dropout rates, suggesting that financial assistance was helping more students remain enrolled in tertiary institutions.
On repayment, Sawyerr said beneficiaries should not regard the process as an undue financial burden, explaining that the repayment structure was designed around the ability of beneficiaries to repay.
He added that beneficiaries would become increasingly traceable as NELFUND continues to develop its repayment system.
Sawyerr also addressed President Bola Tinubu’s announcement that funds recovered by the Economic and Financial Crimes Commission (EFCC) would be channelled towards supporting the student loan scheme.
He clarified that the funds had not yet been received by NELFUND.
The student loan programme was established under the Student Loans Act signed into law by President Tinubu in April 2024.
The scheme provides interest-free financial support to eligible students in public tertiary institutions, covering approved institutional charges and upkeep allowances.
Under the repayment arrangement, beneficiaries are expected to begin repaying their loans two years after completing the National Youth Service Corps (NYSC) programme.
As demand continues to grow, NELFUND is expected to assess the financial implications of the expanding programme and determine how best to sustain access to student loans for eligible Nigerian students.
