- The managing director of the Nigerian Education Loan Fund has stated that N23 billion in loans was disbursed to 94,000 students in 2024
- The loan scheme has received N130 billion from the federal government and is targeting 1.2 million students in 2025
- So far, most beneficiaries are from northern Nigeria, but there is now a rise in applications from the south-south and south-east zones
The Nigerian Education Loan Fund (NELFUND) disbursed about N23 billion in loans to 94,000 students in 2023.
This is according to Mr. Akintunde Sawyerr, Managing Director of NELFUND.
Speaking on the Politics Today show on Monday, Mr Sawyerr explained that even though NELFUND currently funds all courses, there would likely be a focus on courses that can contribute to Nigeria’s growth as a country, are sellable, and are exportable.
Photo Credit: Akintunde Sawyerr
Source: Twitter
Sawyer said:
“It is important to appreciate that We are not funding education for education’s sake. We are going to give funds to people to do things that are going to give them the most realistic chance of getting a job, so that we can make Nigeria more competitive in terms of its workforce. But we are not discriminating any course as of today, and we will not do so without public consultations.”
He added that most of the beneficiaries so far are from the northern part of Nigeria, but there has also been a recent rise in applications from other parts, such as the South-south and South-east zones.
He said;
“If you look at it as a geographical exercise, you will find that the north seems to have the advantage, but if you look at it as a state of origin exercise, there are many students from the south-south and south-east regions who are studying in the north and have started benefiting from the scheme. But I think its important to look at it in terms of geography so that we can track investments going into the institutions.”
He noted that the scheme is focused on students from government-owned tertiary institutions in the country but has not yet reached every such institution.
More student loans in 2025
Sawyerr noted that NELFUND estimates reaching the majority of students in public universities by 2025 and will have onboarded at least 1.2 million students.
He added that NELFUND considered an upward review of the N20,000 student stipends in the coming year.
The beneficiaries will get a moratorium of two years post-NYSC before they are required to repay the loans.
“Nobody is required to pay back to the fund until they get a job, and even then, it is the employer that will be required to make the deduction and remit to the fund” Sawyerr explained.
Funding through the FIRS
Sawyer said the NELFUND gets its primary financing through the Federal Inland Revenue Service (FIRS) and additional funding from the Tertiary Education Trust Fund (TETFUND).
He added that so far, NELFUND has received over N130 billion and still expects an additional N70 billion in inflows, stressing that there was no deficit of funds to push its objective. He added;
“Beyond that, there are other funds that are earmarked for this scheme. We get 1% from the revenue of the FIRS, and that could amount to about N194 billion if our estimates are correct. The point really is that we are not short of funds. The President ensured that we are adequately funded, and we even receive some funds from the proceeds of crime which, a few months ago, amounted to about N50 billion.”
He also noted that the scheme is empowered to invest some of the funds in government instruments like bonds and Treasury bills for a return so that it can build sustainability over time.
FG student loans to keep them in school
In July 2024, the FG launched the NELFUND digital disbursement exercise to help students who can no longer afford their fees to remain in school.
Legit.ng reported some months back that NELFUND had received over 400,000 applications from students across Nigeria.
NELFUND assured that every undergraduate who applied would receive a successful disbursement, as the application was a screening exercise.
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Source: Legit.ng
