The Nigerian Education Loan Fund (NELFUND), a federal government agency dedicated to providing financial support for students and educational institutions, has disbursed N23 billion to individuals and 128 tertiary institutions across Nigeria.
Akintunde Sawyerr, the Managing Director of NELFUND, disclosed the figures during a recent media briefing in Lagos. According to him, N18 billion has been allocated to institutions, while N5 billion has been disbursed as student upkeep funds.
“So far, we have received applications from 326,000 individuals. A total of about N23 billion has been transferred to institutional and individual accounts,” Sawyerr said.
Online Application Process
Students apply for loans through an online portal, where the approval process is also conducted. NELFUND caters to Nigerian students in federal and state-owned tertiary institutions, providing financial assistance for tuition, institutional fees, and stipends.
“We ensure that students who gain or already have admission into government-owned institutions can access loans. These loans cover tuition fees and monthly stipends for upkeep,” Sawyerr explained.
Applications are open once annually, and successful candidates receive monthly stipends directly into their bank accounts. The agency also extends loans to individuals pursuing vocational or skills training at government-approved institutions.
Funding Sources and Sustainability
NELFUND’s funding is primarily derived from 1% of the Federal Inland Revenue Service (FIRS) collections, expected to amount to N194 billion annually. Additional funding comes from donations, investments, and appropriations from other government agencies.
“The EFCC has donated N50 billion from proceeds of crime. TETFund has provided N71 billion out of a pledged N141 billion. We’ve also received N10 billion out of an appropriated N60 billion and are expecting an additional N50 billion,” Sawyerr said.
Legislation currently under review at the National Assembly proposes that 20% of TETFund’s proceeds will be directed to NELFUND, further boosting its sustainability.
Flexible Loan Repayment Terms
Graduates are not obligated to repay loans until two years after completing the National Youth Service Corps (NYSC) program, and repayment is contingent upon employment. Employers are legally required to deduct 10% of a beneficiary’s salary to repay the loan.
“Our system ensures no undue pressure on beneficiaries. Repayment only begins when they secure employment, and employers deduct the repayments directly,” Sawyerr noted.
Broader Goals
In addition to supporting students and institutions, NELFUND also funds vocational training programs to empower Nigerians with skills for self-reliance and economic growth.
NELFUND’s initiatives aim to reduce financial barriers to education, ensuring more Nigerians complete their studies and acquire skills for the future.
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