NELFUND disburses over N116bn in 2024

The Nigerian Education Loan Fund (NELFUND) has announced that, as of January 1, 2025, it has disbursed a total of N116.184 billion for the upkeep of students across 176,252 beneficiary institutions nationwide.

The Managing Director of NELFUND, Akintunde Sawyer, revealed these details during his presentation to the National Assembly Joint Committee on Tertiary Institutions and TETFUND at a budget defense session. He clarified that out of the N116.184 billion disbursed, N37.7 billion was used for institutional loans.

According to Sawyer, a total of 352,796 students applied for the education loan, but only 108,484 applicants were approved.

Regarding the 2025 budget proposal, Sawyer informed the committee, led by Senator Muntari Dandutse and Gboyega Isiaka, that the agency was allocated a budget of N58.4 billion.

After reviewing the agency’s budget proposal, the joint committee approved it through a voice vote.

Before the approval, Senator Muntari Dandutse, Chairman of the Joint Committee, emphasized the importance of transparency in utilizing the funds appropriated to NELFUND for the 2025 fiscal year.

To address the challenges of higher education affordability in Nigeria, President Bola Ahmed Tinubu signed into law the Student Loan Bill in 2023. The initiative is aimed at providing interest-free loans to Nigerian students to ensure that financial constraints do not hinder access to tertiary education.

Under the program, eligible students enrolled in public tertiary institutions can access loans through the Nigerian Education Loan Fund (NELFUND). The funds can be used for tuition fees and other essential educational expenses, with repayment scheduled to commence two years after graduation.

The loan scheme prioritizes students whose families have an annual income of less than N500,000, ensuring that the most vulnerable populations benefit from the program. President Tinubu emphasized that the initiative is part of his administration’s commitment to creating equal opportunities for all Nigerians, especially the youth, who are critical to the nation’s development.

The program will be managed by the Central Bank of Nigeria (CBN) in collaboration with other key financial institutions. While the scheme has been widely praised for its potential to improve access to education, concerns have been raised regarding implementation, sustainability, and repayment enforcement.

With education considered a cornerstone of national growth, the student loan program marks a significant step toward equipping Nigeria’s youth with the skills and knowledge needed to thrive in a competitive global economy.

FRCN