The Nigeria Education Loan Fund (NELFund) has clarified that the government’s student loan initiative is currently restricted to public tertiary institutions in order to maximize the impact of the country’s limited resources and assist as many students as possible.
In an interview on Arise TV, NELFund’s Managing Director, Akintunde Sawyerr, explained that the decision to exclude private institutions is based on prioritizing vulnerable students, most of whom attend public universities where tuition fees are more affordable.
“We’re working with public funds, and resources are limited. Most of the students who need this support are in public schools, where fees are more manageable. It’s about prioritizing and helping more people with the available funds,” Sawyerr stated.
Possibility of Including Private Institutions?
Although the scheme is currently focused on public institutions, Sawyerr suggested that there could be an expansion to include private schools in the future. He shared: “When I spoke with the President (Bola Tinubu), he expressed his desire for the fund to be accessible to all Nigerians. However, managing funds means starting somewhere. I am confident that it will eventually be expanded.”
He also acknowledged that the higher fees at private institutions—sometimes reaching millions—pose challenges for the current funding system to accommodate them.
“We’re focused on helping as many students as possible, rather than a few,” Sawyerr added. “We have to manage the available funds carefully.”
Loan disbursement
Sawyerr reported that the Fund has already distributed N10 billion to approximately 90,970 students, with plans to disburse an additional N92 billion for the upcoming academic session.
The scheme, signed into law by President Tinubu in June 2023, offers interest-free loans that cover tuition fees and provide a monthly allowance of N20,000 for living expenses.
Sawyerr highlighted that the application process began in May 2024 with a pilot phase targeting federal institutions. The loan is paid directly to the schools to cover tuition fees, and beneficiaries are expected to start repaying the loan two years after completing their National Youth Service Corps (NYSC) program, provided they are employed.
The repayment process is designed so that employers deduct 10 percent of the beneficiary’s salary until the loan is fully repaid.
Regional Variations in Applications
Regarding loan applications, Sawyerr pointed out a geographical imbalance, with a higher number of applications coming from northern Nigeria. He explained that this is due to the greater concentration of public institutions in the north, as well as cultural differences in attitudes toward loans.
“We observed that many individuals from the south who study in the north have applied. There is a regional disparity, though not based on the state of origin. Enthusiasm seems lower in the southeast, southwest, and south-south,” he said.
Sawyerr also addressed concerns about the loan application system, emphasizing that NELFund has implemented an electronic, data-driven platform to minimize human involvement and reduce the risk of corruption.
Applicants are required to submit unique identifiers, such as their JAMB number, National Identification Number (NIN), Bank Verification Number (BVN), and matriculation number, which are cross-checked with institutional records.
“We match the information with what the institutions have provided, ensuring we are dealing with legitimate applicants. The system is IT-based, and while challenges may arise, it is generally a simple portal to use,” he explained.
Though there have been some difficulties with the online application process, Sawyerr reassured that the Fund’s support team is available to help resolve any issues.
He added: “We recognize that systems like this can be targeted by people trying to insert ghost applicants or hijack identities. We have put safeguards in place to ensure that we don’t make pay
ments to unauthorized individuals.”
