NELFUND Breaks Record As Student Loan Payouts Soar To N116 Billion Nationwide

According to Ireporter Online, the Nigerian Education Loan Fund (NELFUND) has reached a significant milestone with the disbursement of N116 billion to support students nationwide through institutional fee payments and monthly upkeep allowances. The Managing Director of the Fund, Akintunde Sawyerr, disclosed the figures in Abuja, reaffirming the Federal Government’s drive to ensure inclusive and affordable tertiary education.

Sawyerr explained that N65 billion was transferred directly to 239 government-owned universities, polytechnics, and colleges of education on behalf of students whose loan applications were approved, while N51 billion was released as monthly stipends to beneficiaries. Out of 1,067,000 applications, he confirmed that 624,000 students have already benefitted from the scheme.

He noted that the initiative remains one of the flagship social investment programmes of the current administration, aimed at removing financial constraints that prevent Nigerians from accessing higher education. Sawyerr clarified that newly admitted students do not receive fee payments until they complete registration and matriculation, citing financial risks associated with disbursing funds to individuals who may eventually not resume.

He said the Fund is exploring temporary solutions to difficulties faced by fresh students who cannot access loans without a matriculation number. One proposal under review is allowing the use of Joint Admissions and Matriculation Board (JAMB) registration numbers to facilitate early processing.

Sawyerr also revealed that NELFUND plans to expand its coverage to vocational and technical skill acquisition programmes, in line with the Federal Government’s broader human capital development agenda. He emphasised that Nigeria’s next phase of development requires a strong balance between academic knowledge and practical technical capability, adding that multiple government ministries are already advancing various skill-based initiatives.

On concerns about delays in upkeep payments, Sawyerr attributed the discrepancies to varying academic calendars and application timelines across institutions. He stressed that the Fund only begins payment from the month an application is approved and does not make retrospective payments to avoid errors and double disbursement.

The NELFUND chief dismissed speculation that institutions were inflating tuition fees, explaining that schools upload their official fee schedules into the verification portal, and students are able to challenge any discrepancies.

Sawyerr also confirmed a growing interest from private organisations and philanthropists seeking to support indigent students through the platform. He disclosed that beneficiaries of earlier student loan schemes dating as far back as the 1970s have voluntarily returned to repay their debts, describing it as a renewed show of confidence in government-backed programmes.

Highlighting NELFUND’s impact, he said the scheme has prevented many students from dropping out, particularly those in their final year who lacked financial support. Sawyerr attributed the programme’s success to President Bola Tinubu’s vision for a more accessible educational system.

He stated that the Fund’s financing is drawn from several sources, including a fraction of the four per cent development levy on company profits, government budgetary allocations, and external donations. Graduates are expected to begin repayment in their third year after NYSC, with employers required to deduct and remit 10 per cent of their monthly income. Self-employed beneficiaries are also expected to contribute 10 per cent directly, while a Global Standing Instruction mechanism has been instituted to recover funds from defaulters when necessary.