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The Nigerian Education Loan Fund (NELFUND) has rejected allegations that it gives preferential treatment to children of members of the All Progressives Congress (APC) in the disbursement of student loans.
NELFUND Managing Director and Chief Executive Officer, Akintunde Sawyerr, described the claim as unfounded, insisting that the student loan scheme operates without political, religious or other forms of bias.
Speaking during an interview on Channels Television’s Sunday Politics, Sawyerr said beneficiaries are selected based on established eligibility requirements rather than their political affiliations.
He described allegations that APC members’ children were being favoured as “completely ridiculous”.
According to him, the system was designed “without bias” and does not consider political connections when determining who receives support.
Sawyerr said NELFUND relies on established processes and available information to identify students who qualify for assistance, particularly those struggling to meet their educational expenses.
He also disclosed that demand for the student loan scheme had been “overwhelming”, saying the programme had provided critical financial relief to students who might otherwise have been unable to remain in tertiary institutions.
“The demand has been overwhelming, because clearly a lot of people have struggled to get into these institutions,” he said.
“They are hanging on by the skin of their teeth to stay in the institution, and this programme came as a rescue for them.”
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Sawyerr said NELFUND was studying the rising demand and disbursement figures to better determine the financial resources required to sustain and expand the programme.
He disclosed that the fund had so far disbursed ₦162 billion in upkeep allowances to students across public tertiary institutions.
The NELFUND chief also said the intervention was beginning to affect competition among tertiary institutions, as students with improved access to funding gained greater flexibility in deciding where to pursue their education.
On the impact of the scheme on student retention, Sawyerr cited research indicating that the programme had contributed to a 20 per cent reduction in dropout rates.
He further explained that repayment of the loans would be structured around beneficiaries’ capacity to repay, arguing that the process should not create an excessive financial burden for graduates.
Sawyerr added that beneficiaries would become easier to trace as NELFUND’s repayment mechanisms continued to develop.
He also addressed President Bola Tinubu’s announcement that funds recovered by the Economic and Financial Crimes Commission (EFCC) would be used to support the student loan programme. According to him, NELFUND had not yet received the funds.
The student loan programme was established under the Student Loans Act signed into law by President Tinubu in April 2024. It provides interest-free financial assistance to eligible students in public tertiary institutions, covering approved institutional charges and upkeep allowances.
Repayment is scheduled to commence two years after beneficiaries complete their National Youth Service Corps (NYSC) programme.
