The Nigerian Education Loan Fund (NELFUND) has disbursed N23 billion in loans to 128 tertiary institutions and individuals, fulfilling its mandate to support students and institutions in Nigeria.
Akintunde Sawyerr, Managing Director of NELFUND, revealed this during a recent briefing in Lagos.
He stated that N18 billion of the funds were allocated to institutions, while N5 billion was directed to individual students for upkeep.
Since its establishment, NELFUND has processed applications from over 326,000 individuals seeking financial support.
NELFUND was established to prevent students from dropping out due to financial constraints.
The agency provides tuition loans and monthly stipends for students in government-owned tertiary institutions.
Applications and approvals are conducted online, ensuring accessibility for all eligible students.
“Students who are Nigerian citizens, already enrolled or admitted into government-owned tertiary institutions, can apply for loans to cover tuition, institutional charges, or even receive pocket money,” Sawyerr explained.
Additionally, NELFUND extends its services to individuals pursuing vocational and skills training in approved institutions.
NELFUND’s funding is primarily drawn from 1% of the Federal Inland Revenue Service (FIRS) collections, estimated to yield approximately N194 billion.
The agency also receives support from other sources, including the Economic and Financial Crimes Commission (EFCC), which donated N50 billion, and the Tertiary Education Trust Fund (TETFund), which has contributed N71 billion out of an allocated N141 billion.
Acknowledging the financial challenges faced by graduates, Sawyerr emphasized that loan repayment begins only after beneficiaries secure employment. Graduates have a two-year grace period post-National Youth Service Corps (NYSC) before repayment obligations commence.
Employers are required by law to deduct 10% of the beneficiary’s salary and remit it to NELFUND.
“There’s no obligation to repay unless a person has a job,” he said. “Our guidelines ensure a fair repayment process, placing responsibility on employers benefiting from the intervention.”
NELFUND’s management is exploring avenues to make the fund sustainable through investments and partnerships.
A pending bill in the National Assembly proposes allocating 20% of TETFund’s proceeds to NELFUND.
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