No Loans for Private Students—NELFUND Points to the Law

The Nigerian Education Loan Fund (NELFUND) has said students in private tertiary institutions are currently excluded from its interest-free loan scheme because the law setting up the Fund does not permit it.

Explaining the situation, NELFUND’s Managing Director, Akintunde Sawyerr, said the Establishment Act clearly limits the loan programme to students in public universities, polytechnics and colleges of education.

The NELFUND Act 2024, signed by President Bola Tinubu in April 2024, provides zero-interest loans to help Nigerian students in public institutions pay tuition fees and meet basic living expenses.

Since the scheme began, NELFUND has disbursed over ₦161.97 billion, supporting more than 864,798 students across the country—many of whom would have struggled to remain in school without the intervention.

However, the policy has sparked concerns among stakeholders, especially parents and students in private universities. Founder and Chancellor of Afe Babalola University, Ado-Ekiti, Chief Afe Babalola (SAN), questioned why private university students were excluded, stressing that they are equally Nigerian and deserving of government support.

Babalola also drew attention to the fact that private universities do not benefit from the Tertiary Education Trust Fund (TETFund), even though they contribute to national revenue through taxes.

Responding to the concerns, Sawyerr said NELFUND was created to support Nigerian students broadly, but implementation must begin within the limits of the law. He noted that the Fund hopes to extend its reach to private institutions in the future if the law is amended.

Also speaking, NELFUND’s Executive Director of Operations, Mustapha Iyal, explained that the government has more oversight and control over public tertiary institutions, making it easier to manage and regulate the loan scheme.

For now, NELFUND maintains that any inclusion of private university students will require a legal review, leaving thousands of private-school students waiting for possible policy changes that could ease their financial burde