Students’ Loan: NELFund explains focus on public institutions as private varsities clamour for inclusion

The Nigeria Education Loan Fund (NELFund) Managing Director Akintunde Sawyerr has clarified that the federal government’s student loan scheme prioritizes public tertiary institutions due to limited resources.

Speaking during an interview with Arise TV on Monday, Sawyerr explained that the initiative targets vulnerable citizens struggling to afford tertiary education, predominantly found in public institutions with lower fees.

“The funds are limited, and we’re dealing with public funds,” Sawyerr emphasized. “We’re focused on helping as many as possible rather than a few.” He cited President Bola Tinubu’s desire to expand the program to all Nigerians, hinting at potential future inclusion of private institutions.

“When I spoke with the president, he expressed his desire that the fund should be available to all Nigerians. But you have to manage funds and start somewhere. I do not doubt that, at some point in the future, it will be expanded.

“The fee range we pay out goes from about N46,000 to N150,000 depending on the course. These are the amounts of money stopping people from progressing into tertiary institutions. In private institutions, it will probably run into millions.

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“We’re focused on trying to help as many as possible, rather than a few. We have to manage funds.”

Sawyerr addressed concerns about glitches and complexity, emphasizing NELFund’s electronic process ensures security and efficiency.

“We’re using an electronic process and specific identifiers that make it unique to the individual. JAMB numbers, NIN, BVN, and matriculation numbers. The individual goes online to provide us with that information,” he added.

“We match it with what the institution has provided us and know that we are dealing with an individual. It’s an IT-based system. They’re bound to have challenges but it’s a generally simple portal to engage with. We have support staff that help us cut through issues that arise.”

President Bola Tinubu enacted an initial version of the student loan policy in June 2023 to grant interest-free loans to students.

The scheme was to commence in October 2023 but implementation was repeatedly deferred until a re-enactment in April 2024.

NELFUND opened the loan application portal on May 24, at which time a pilot phase that served only federal tertiary institutions began.

The NELFund loan funds institutional fees paid directly to the campus and a monthly upkeep allowance of N20,000 paid to the student.

The repayment process for the loans begins two years after a recipient completes youth service, provided they are employed.

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