NELFUND: 788,947 benefit from N154.3bn student loans in 19 months

By Emma Njoku

The Nigerian Education Loan Fund has disclosed that 788,947 students across the country, have benefited from N154.3 billion disbursed by the fund in 19 months since the scheme’s launch.

Managing Director, NELFUND, Mr. Akintunde Sawyerr, made the disclosure, yesterday, noting that the total disbursed N82.34 billion covered institutional fees, while N72.02 billion went to students’ upkeep allowances, distributed across 262 institutions nationwide.

Sawyerr said the beneficiaries were selected from 1,265,509 applications received since disbursements began on May 24, 2024.

“As of today, we have 788,947 students who have been turned into beneficiaries. We have received 1,265,509 applications. We have disbursed N82.34 billion in institutional fees and N72.02 billion for students’ upkeep allowances across 262 institutions,” Sawyerr said.

He pointed out that the gap between applications and beneficiaries was due to double-counting and delays in institutional verification.

“One individual may apply more than once, so we, sometimes, count them twice. Also, schools need to confirm that students are still bona fide. Some respond immediately, others take their time.

“The latest dashboard report indicated 3,008 new applications on Tuesday alone, a 0.2 percent increase from the previous day.

“Last week alone, we had about 50,000 applications, which is a lot to process. We must check to ensure there is no fraud and then batch the applications by school for verification. We cannot just bring in anyone to handle this because we are dealing with public funds. Speed is important, but we prioritise safety, so that government money is not lost,” he said.

Established to implement the Nigeria Student Loan Scheme, signed into law by President Bola Tinubu in April 2024, NELFUND provides interest-free loans to students in public universities, polytechnics and colleges of education to cover tuition and essential living costs.

Under the programme, beneficiaries begin repayment only after securing employment following the completion of the National Youth Service Corps (NYSC) programme, minimising financial pressure on graduates.

Sawyerr said more students should apply, emphasising the interest-free nature of the loan, saying, “They must have a bank account; we never disburse cash. One payment goes to the institution on behalf of the student, while the other goes directly to the individual as a stipend.

The institutional fees cover tuition and other approved charges, aside from accommodation, which is subject to confirmation by the loans committee.”

He emphasised that repayment is expected to begin two years after completing the NYSC programme, particularly, if beneficiaries are employed.