The Nigerian Education Loan Fund (NELFUND) has disbursed N116 billion to cover institutional fees and upkeep allowances for students across the country.
In an interview with the News Agency of Nigeria (NAN) in Abuja, NELFUND Managing Director Akintunde Sawyerr described this move as a milestone in the federal government’s commitment to affordable and inclusive tertiary education.
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Mr Sawyerr said N65 billion has been paid directly to 239 government-owned institutions, including universities, polytechnics, and colleges of education, on behalf of students whose loan applications were approved.
He said an additional N51 billion was also disbursed directly to the beneficiaries as monthly upkeep allowances,
Providing updates on the progress of the scheme, the NELFUND boss said the Fund received a total of 1,067,000 loan applications, out of which 624,000 students have so far benefited.
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“We have 1,067,000 loan applications and have been able to pay fees and upkeep for 624,000 students in 239 institutions – government-owned universities, polytechnics, colleges of education,” he said.
“The 239 institutions in these categories have been paid by us. We have disbursed so far, N65 billion in institutional fees.
“We have paid out N51 billion as monthly upkeep. It is a lot of money, and a lot of people have received the upkeep. In total, we have disbursed N116 billion of Nigeria’s government money.”
He added that NELFUND had continued to record students’ applications daily.
According to Mr Sawyerr, the education loan scheme is one of the flagship social investment initiatives of the President Bola Tinubu administration.
He explained that NELFUND was introduced to remove financial barriers for students in tertiary institutions, ensuring that no Nigerian is denied education due to a lack of funds.
With the growing number of applicants and the volume of funds disbursed, the NELFUND boss reaffirmed commitment to transparency and efficiency in managing the scheme.
Vocational trainings
Mr Sawyerr also said that while NELFUND primarily focused on providing financial support to students in tertiary institutions since its launch, plans were underway to expand access to individuals enrolled in vocational and technical programmes across the country.
He stated that the extension was in line with the federal government’s broader education and skills development agenda.
According to him, Nigeria’s next development phase requires a balance between academic and technical competence.
“At NELFUND, we have a mandate to also do vocational skills,” he said.
“We have not started yet, but I know that the President Bola Tinubu administration has ensured that there is full coverage around the skills issue.
“The Ministry of Youth Development is doing skills, the Ministry of Education is involved in skills, and the Ministry of Digital Economy is involved in IT soft skills. So, skills is something that many departments of government have been charged with doing.”
Private sector involvement
Mr Sawyerr also noted that the scheme is witnessing a surge of interest from organisations in the private sector and philanthropists eager to support the payment of institutional fees for students nationwide.
He said individuals, companies, and charitable groups have expressed willingness to collaborate with the Fund to expand access to education for underprivileged Nigerians.
According to him, several private companies and wealthy Nigerians have approached NELFUND to use its platform to pay the fees of students they do not personally know.
He said the development signals a new phase of public-private collaboration in education financing.
“We have also had a number of people who received loans from the old scheme in the 70s who have given us cheques,” he said.
“They believe that in giving us money or paying off their loans of 50 years ago, in some cases, shows that they are having some level of trust in government.”
Mr Sawyerr said such partnerships would help to sustain the scheme and expand its impact, particularly for indigent students who might otherwise drop out of school.
On NELFUND achievement, Mr Sawyerr noted that the scheme has significantly reduced dropout rates.
“A number of people have graduated from various institutions because the Fund came to their rescue. You would be amazed at the number of people that were going to drop out in their final year that took advantage of the loan and the Fund rescued them,” he said.
“I think at this point, I should give credit to President Bola Tinubu for being visionary to positively affect the lives of many Nigerians.”
Funding for NELFUND
NAN reports that there are multiple funding streams, including tax, levy, government budget, and potential external grants that give NELFUND a more diverse and potentially sustainable financial base.
Under the new National Taxation Act, a four per cent development levy is imposed on company profits, and NELFUND is slated to receive 25 per cent of the proceeds from this levy.
NELFUND also receives funding via the federal government’s annual budget. For example, in the 2025 budget, the government allocated ₦175.13 million to the Fund.
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According to its founding legislation, NELFUND can also be funded via donations, gifts, grants, endowments, and “revenue accruing to the fund from any other source.”
The law also allows NELFUND to engage in “other productive activities” to generate income.
In August 2024, the Fund received N50 billion from the Economic and Financial Crimes Commission (EFCC) to help expand the loan scheme.
(NAN)
