The Nigerian Education Loan Fund (NELFUND) has announced the disbursement of a significant N116.184 billion in student loans as of January 1, 2025. This disclosure came during a budget defense session before the National Assembly Joint Committee on Tertiary Institutions and TETFund, held in Abuja on Thursday.
Akintunde Sawyer, the Managing Director of NELFUND, revealed that this amount has been allocated to support students across 176,252 beneficiary institutions in the country. Out of the disbursed sum, N37.7 billion was specifically used for institutional loans, aiding institutions directly, while the remainder was for student maintenance.
“NELFUND has been instrumental in bridging the financial gap for students in tertiary education,” Sawyer stated, highlighting the fund’s role in ensuring that financial constraints do not hinder educational aspirations. He noted that from the 352,796 applications received for loans, 108,484 students were successful in obtaining financial support.
This significant financial aid comes at a time when the budget for NELFUND for the 2025 fiscal year has been set at a relatively modest N58.4 billion, sparking discussions on the sustainability and future funding of the program. Sawyer explained the budget breakdown, stating that N12.2 billion is earmarked for personnel costs, N24.7 billion for overhead costs, and N21.4 billion for capital expenditure.
The initiative, which is part of President Bola Tinubu’s educational reform agenda, aims to make higher education more accessible by offering interest-free loans to students. The announcement of such a large disbursement has been met with approval and optimism from various stakeholders in the education sector, with posts on X (formerly Twitter) celebrating this milestone as a step towards educational equity.
However, the disparity between the amount disbursed and the budget allocated raises questions about the long-term funding strategy for NELFUND. The National Assembly’s joint committee expressed their intent to closely examine NELFUND’s financial plan to ensure it aligns with national educational goals and can meet the growing demand for student loans.
This development comes amidst ongoing discussions about educational financing in Nigeria, with NELFUND playing a pivotal role in reducing the financial burden on students and their families. The fund’s efforts are not just about providing loans but also about fostering a culture where education is seen as a right, not a privilege, accessible to all regardless of economic background.
The announcement has also sparked a trend on X, where users are debating the effectiveness of such loans in truly transforming access to education, the repayment mechanisms, and whether this will encourage more students to pursue higher education without the fear of financial debt.
As NELFUND continues to navigate its role in Nigeria’s educational landscape, the success of this substantial disbursement will be a key measure of its impact. The fund’s leadership remains committed to transparency, accountability, and expanding the program’s reach to benefit more Nigerian students in the years to come.