Abuja, Nigeria — The Nigerian Education Loan Fund (NELFUND) has confirmed the disbursement of N116.184 billion to support students across 176,252 beneficiary institutions nationwide as of January 1, 2025.
Akintunde Sawyer, Managing Director of NELFUND, disclosed this during a budget defense session with the National Assembly Joint Committee on Tertiary Institutions and TETFUND. He explained that N37.7 billion of the total amount disbursed was allocated for institutional loans.
Providing further details, Sawyer revealed that 352,796 students applied for the education loan in 2024, but only 108,484 applications were approved.
Presenting the agency’s 2025 budget proposal, Sawyer informed the committee, chaired by Senator Muntari Dandutse and Gboyega Isiaka, of a proposed allocation of N58.4 billion for the year. After deliberations, the joint committee approved the budget through a voice vote.
During the session, Senator Dandutse emphasized the necessity for transparency in utilizing funds appropriated to NELFUND for the 2025 fiscal year, urging the agency to ensure the loans serve their intended purpose.
The student loan initiative, signed into law in 2023 by President Bola Ahmed Tinubu, is designed to make higher education more affordable by providing interest-free loans to eligible students in public tertiary institutions. Under the program, students can access loans for tuition and other educational costs, with repayment scheduled to begin two years after graduation.
Targeting families with an annual income below N500,000, the program prioritizes vulnerable populations, aligning with President Tinubu’s vision of equal opportunities for all Nigerians, particularly the youth.
Managed by the Central Bank of Nigeria (CBN) in collaboration with other financial institutions, the initiative has been lauded as a transformative step for Nigeria’s education sector. However, concerns have been raised about the program’s implementation, sustainability, and enforcement of repayment.
Recognized as a cornerstone of national development, the student loan scheme aims to empower Nigeria’s youth with the education and skills needed to compete in a global economy, thereby contributing to the country’s long-term growth and prosperity.
By Taiwo Olatinwo | January 2, 2025