Student Loan Demand Overwhelming — NELFUND Raises Alarm

Demand for student loans under the Nigerian Education Loan Fund (NELFUND) has been overwhelming, according to the organisation’s Managing Director and Chief Executive Officer, Akintunde Sawyerr.

According to Ireporter Online, Sawyerr disclosed this during a television interview, explaining that the student loan scheme had provided crucial financial support to students who might otherwise struggle to remain in tertiary institutions.

He said the high demand reflected the financial difficulties faced by many students, adding that some beneficiaries were only able to continue their education because of the assistance provided through the programme.

Sawyerr also explained why NELFUND’s support was not limited exclusively to students from poor or indigent families. He argued that a young person’s access to educational support should not be determined solely by the financial status of their parents.

According to him, students can face circumstances that make financial assistance necessary regardless of their family’s overall economic position.

The NELFUND chief executive urged Nigerians to view young people as adults capable of making important decisions about their education and future.

He said having wealthy parents or the possibility of inheriting significant assets should not automatically disqualify a student from receiving educational support when such assistance is needed.

Sawyerr disclosed that NELFUND was studying the growing demand for the scheme and analysing its disbursement figures to better understand students’ financial needs.

He said the fund had so far disbursed about ₦162 billion in upkeep allowances to students as the government-backed programme continues to expand its reach across public tertiary institutions.

According to Sawyerr, the scheme was also beginning to influence competition among tertiary institutions by giving students greater financial flexibility in deciding where to pursue their education.

He dismissed allegations that NELFUND favoured children of members of the All Progressives Congress (APC), describing such claims as completely unfounded.

Sawyerr maintained that the programme was designed to operate without political bias and that beneficiaries were selected based on established eligibility criteria.

He explained that NELFUND uses available information and established procedures to identify students who require assistance with their educational expenses.

The NELFUND boss further cited research indicating that the scheme had contributed to a reduction in student dropout rates, putting the decline at about 20 per cent.

On repayment, Sawyerr said beneficiaries should not be subjected to undue pressure, noting that the repayment structure was designed around their ability to repay the loans.

He added that beneficiaries would become increasingly traceable as the repayment mechanism develops.

Sawyerr also spoke about President Bola Tinubu’s announcement that funds recovered by the Economic and Financial Crimes Commission (EFCC) could be used to support the student loan scheme. He clarified that NELFUND had not yet received the funds.

The student loan programme was established under the Student Loans Act signed into law in April 2024. It provides interest-free financial support to eligible Nigerian students in public tertiary institutions, covering approved institutional charges and upkeep allowances.

Repayment of the loans is scheduled to begin two years after beneficiaries complete the National Youth Service Corps (NYSC) programme.